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
