## [answered] Bridge City Consulting bought a building and the land on wh

 Bridge City Consulting bought a building and the land on which it is located for \$140,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid \$10,000 for building renovations before it was ready for use.
 Required: 2. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year.?(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
• Record all expenditures for the land and buildings assuming all transactions were paid for with cash and occurred at the start of the year.
 3 Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a \$15,000 estimated residual value.?(Do not round intermediate calculations.)
 4 What should be the book value of (a) the land and (b) the building at the end of year 2?

Cost of Land = 140,000 x 70% = \$98,000

Cost of Building = 140,000 - 98000 = 42000 + 10,000 = \$52000

Journal Entry:

Date Account Title

Jan1 Land A/c

Building A/c

Cash A/c

(Recording of Purchase of...

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This question was answered on: Sep 18, 2020

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