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    phugh003's Avatar
    phugh003 Posts: 2, Reputation: 1
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    #1

    Oct 10, 2017, 09:20 AM
    How do I record the gain/loss on a sale of land for the company that I work for?
    I need to know how to record the journal entries for gain on sale of land. The facts are as follows:
    Purchase Price $ 1,666,165.75
    Cost Basis $346,936.72

    Closing Costs:
    Commission $ 99,969.94
    Title Policy $ 8,899.00
    Other Title Charges $ 412.26
    Tax Certificate $ 76.58
    Survey $ 2,500.00
    County Prop Taxes $ 7,795.63
    Attorney Fees $ 2,192.50

    Net Proceeds $ 1,544,319.84
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #2

    Oct 10, 2017, 09:38 AM
    What do you think it should be.. post your answer then we will help by telling you if you are right or not. Site rules REQUIRE it.
    phugh003's Avatar
    phugh003 Posts: 2, Reputation: 1
    New Member
     
    #3

    Oct 10, 2017, 12:18 PM
    Dr. Cash $1,544,319.84 (net proceeds)
    Dr. Selling costs 121,845.91
    Cr. Land 346,936.72
    Cr. Gain on Sale 1,319,229.03


    The first time I booked this, I did the following:

    Dr. Cash $1,544,319.84
    Cr. Land 346,936.72
    Cr. Gain on Sale 1,197,383.12

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