ANSWER
As per the given question,
Journal entry in the books of Whispering co. | |||||
Date | Particulars | Debit | Credit | ||
01-01-2017 | Building | 4320000 | |||
cash | 4320000 | ||||
(to record purchase of building) | |||||
12/31/17 | Cash | 257900 | |||
Rent revenue | 257900 | ||||
(to record receipt of payment) | |||||
Depreciation expenses(4320000/50) | 86400 | ||||
accumulated depreciation-building | 86400 | ||||
(to record depreciation) | |||||
Property tax expenses | 79100 | ||||
Insurance expenses | 9700 | ||||
Cash | 88800 | ||||
(to record insurance & property tax) | |||||
b) | In the books of Metlock Inc | ||||
12/31/17 | Rent expenses | 257900 | |||
Cash | 257900 | ||||
(to record payment of rent exp) | |||||
c) If whispering Paid $28500 to a real estate broker on january 1 2017 | |||||
Expenses should be reported = 28500/10 = 2850 |
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