Question

Blue Spruce Corp. had the following transactions.

Answer 1

Answer:

1. Dr Cash $10,300

Cr Land $8,240

Cr Gain on Sale of Land $2,060

2. Dr Cash $21,200

Cr Common Stock $21,200

3. Dr Depreciation Expense $12,400

Cr Accumulated Depreciation - Building $12,400

4. Dr Salaries Expense $7,200

Cr Cash $7,200

5. Dr Equipment $8,100

Cr Common Stock $1,200

Cr Additional Paid-in Capital $6,900

6 Dr Cash $1,296

Dr Loss on Sale of Equipment $1,944

Dr Accumulaed Depreciation -Equipment $7,560

Cr Equipment $10,800

Explanation:

Preparation of the journal entry.

1. Dr Cash $10,300

Cr Land $8,240

Cr Gain on Sale of Land $2,060

($10,300-$8,240)

2. Dr Cash $21,200

Cr Common Stock $21,200

3. Dr Depreciation Expense $12,400

Cr Accumulated Depreciation - Building $12,400

4. Dr Salaries Expense $7,200

Cr Cash $7,200

5. Dr Equipment $8,100

Cr Common Stock $1,200

(1,200*$1)

Cr Additional Paid-in Capital $6,900

($8,100-$1,200)

6 Dr Cash $1,296

Dr Loss on Sale of Equipment $1,944

($10,800-$7,560-$1,296)

Dr Accumulaed Depreciation -Equipment $7,560

Cr Equipment $10,800