Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume your companys year ends on december 31. you

Assume your companys year ends on December 31. Your company has obtained the following fixed...

60.1K

Verified Solution

Question

Accounting

Assume your companys year ends on December 31. Your company has obtained the following fixed assets:
Building
On January 1,2022, you borrowed $3,000,000 to construct a new building on your property and issued a 5-year, 9% note at the bank. This note requires payment of interest each year on December 31 with all of the principal due at the end of 2026.
On March 1,2022, you spent $600,000 for construction.
On October 1,2022, you spent $2,000,000 for construction.
On December 31,2022, you spent $200,000 to finish construction and you moved into the new building.
On December 31,2022, you paid interest on the bank loan in number 1 above and recorded any depreciation on the building, assuming a 25-year expected life, $600,000 salvage value, and straight line method of depreciation.
On December 31,2023, you paid interest on the bank loan in number 1 above and recorded any depreciation on the building,
Questions (please show and label your work)
Prepare journal entries for the above events (to the nearest dollar)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Operations Management
1.2K views

analyse the various types of Gantt charts Gus bell and Jeff can use to schedule preparations...

Physics
1.2K views

The length of an elastic string is X m when the tension is 8N and...

Physics
1.2K views

30 In a potentiometer of 10 wires the balance point for measuring the emf of...

Geometry
1.2K views

4 A F A B C x 2 2x 1 10 12 18 C E...

Statistics
1.2K views

cigarettes bad peopler Cigar smoki are definitely not good for a person s health and...

Algebra
1.2K views

Solution To get the sampling distribution of probability value we should first determine whether the...

Accounting
1.2K views

Toya Company is considering the production and sale of a new product with the following...

Accounting
1.2K views

Exercise 20-21(Algo) Cash budget LO P2 Fiopert Corporation requies a mirimum...

Accounting
1.2K views

Which of the following statements regarding the accrual accounting is TRUE? Expenses are recognized in...

Accounting
1.2K views

Choosing the Optimal Product Mix with One Constrained Resource Billings Company produces two products, Product...

Accounting
1.2K views

The Assembly department reports the following cost information: Cost of Beginning work in process Direct...

Accounting
1.2K views

Use Nordstrom, Inc's 7-31-2021 quarterly financial statment report to calculate quarterly EPS surprise (using diluted...