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View Full Version : Micellaneous Plant Asset Transactions


kodaksun
Apr 28, 2007, 12:53 PM
Paid Cash of $285,000 for land appraised at $250,000 and an existing building, which will be destroyed to make room for a new one, appraised at $50,000.
What is the journal entry for this. Thank you

Kodak

CaptainForest
Apr 28, 2007, 01:20 PM
You bought the land and building solely for the land.

So,
Debit Land 285,000
Credit Cash 285,000