Required Information [The following Information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $619,500, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $590,000 and is expected to last another 20 years with no salvage value. The land is valued at $1,740,500. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 347,400 191,400 2,262,000 168,000 Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were se. View transaction list Journal entry worksheet < 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. Date December 31 General Journal Debit Credit
Required Information [The following Information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $619,500, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $590,000 and is expected to last another 20 years with no salvage value. The land is valued at $1,740,500. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 347,400 191,400 2,262,000 168,000 Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were se. View transaction list Journal entry worksheet < 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. Date December 31 General Journal Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Dinesh bhai
![Required Information
[The following Information applies to the questions displayed below.]
On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and Land
Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $619,500,
with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $590,000 and is expected to
last another 20 years with no salvage value. The land is valued at $1,740,500. The company also incurs the following
additional costs.
Cost to demolish Building 1
Cost of additional land grading
Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value
Cost of new Land Improvements 2, having a 20-year useful life and no salvage value
$ 347,400
191,400
2,262,000
168,000
Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were
se.
View transaction list
Journal entry worksheet
<
1
2 3 4
Record the year-end adjusting entry for the depreciation expense of Building
2.
Note: Enter debits before credits.
Date
December 31
General Journal
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fc8b6fe-64d2-4257-b5b6-43e7fe81df06%2F30f429c5-b908-4409-b009-6557568d559e%2F0axqsb4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[The following Information applies to the questions displayed below.]
On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and Land
Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $619,500,
with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $590,000 and is expected to
last another 20 years with no salvage value. The land is valued at $1,740,500. The company also incurs the following
additional costs.
Cost to demolish Building 1
Cost of additional land grading
Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value
Cost of new Land Improvements 2, having a 20-year useful life and no salvage value
$ 347,400
191,400
2,262,000
168,000
Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were
se.
View transaction list
Journal entry worksheet
<
1
2 3 4
Record the year-end adjusting entry for the depreciation expense of Building
2.
Note: Enter debits before credits.
Date
December 31
General Journal
Debit
Credit
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