Answer:
Explanation:
The journal entries are shown below:
1. Land A/c Dr $273,000
To Cash A/c $273,000
(Being land is purchased for cash)
2. Building A/c Dr $729,820
To Notes Payable $685,000
To Cash $44,820
(Being all cost are recorded)
The computation of the cash is shown below
= ($1,300 + $15,300 + $28,220)
= $44,820
3. Depreciation Expenses A/c Dr $5,626
To Accumulated Depreciation - Building A/c $5,626
(Being depreciation expenses is recorded)
The computation is shown below:
= (Cost - residual value) ÷ (useful life)
= ($729,820 - $336,000) ÷ (35 years)
= ($393,820) ÷ (35 years)
= $11.252
The 6 months depreciation would be $5,626
