Question

on April 1, 2017, Cheyenne Company received a condemnation award of $567,600 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new state highway, The land and building cost $79,200 and $369,600, respectively, when they were acquired. At April 1, 2017, the accumulated depreciation relating to the building amounted to $211,200. On August 1, 2017, Cheyenne purchased a piece of replacement property for cash. The new land cost $118,900, and the new building cost $529,000 ounted to $2 Prepare the journal entries to record the transactions on April 1 and August 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually, If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit April 1 Aug. 1

Answer 1

	Account Titles and Explanation	Debit	Credit
01-Apr-17	Cash	$       5,67,600
	Accumulated Depreciation - Building	$       2,11,200
	Land		$           79,200
	Buildings		$       3,69,600
	Gain on disposal of plant assets		$       3,30,000
01-Aug-17	Land	$       1,18,800
	Buildings	$       5,28,000
	Cash		$       6,46,800