Question

Granny Carney Associates surveys American eating habits. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for each depreciable asset. During 2018, Granny Carney Associates completed the following transactions: (Click the icon to view the transactions.) Record the transactions in the journal of Granny Carney Associates. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jan. 1: Purchased office equipment, $119,000. Paid $84,000 cash and financed the remainder with a note payable. (Record a single compound journal entry.) Date Accounts and Explanation Debit Credit Jan. 1

Answer 1

Journal Entries Account Title and Explaination Debit Date Post. Credit Ref. Office Equipment Jan. 1 119,000.00 Cash 84,000.00 Note Payable 35,000.00 |(To record purchase of office equipment and cash paid partly remaining from note payable) Land ($320000x$252000/($252000+$84000)) Communication Equipment ($320000x$84000/($252000+$84000) Aprг.1 240,000.00 80,000.00 Cash 320,000.00 |(To record Purchase of Communication Equipment and Land) Cash Sep.1 430,000.00 265,000.00 Accumulated Depreciation - Building Building Gain on Sale of Building 570,000.00 125,000.00 |(To record Sale of Building) Depreciation Expense ($80000-$0)/5 x 9months/12months Accumulated Depreciation - Communication Equipment |(To record Depreciation expense on communication equipment) 12,000.00 2$ Dec.31 12,000.00