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

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.

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