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Accounting & Bookkeeping Forum
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bonubarno
Joined: 20 Jan 2008
Posts: 3
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| Posted: Sun Jan 20, 2008 10:12 pm Post subject: Need help with an example. Please. |
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Hi. I am new to accounting. Can anyone help me with this transaction? Do not know how to record it in the general journal, i.e. what gets debited/credited (step-by-step).
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A company purchased 1) a building for $3,200 and 2) land for $2,700 and paid for all of these 1) by cash in the amount of 4,100 and 2) by taking a 10-year mortgage in the amount of 1,800.
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I would greatly appreciate your help.
Thanks. BB |
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QB Newbie
Joined: 06 Jan 2008
Posts: 11
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| Posted: Mon Jan 21, 2008 1:47 am Post subject: BIS publications ??? |
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| Have a look at the publications of Bank for Inernational Settlements to see if there is any help, although some of docs are more than 20 years old, which is another uncomfort to me who get used to follow the international docs of within 10 years of age :lol: |
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GreinerII
Joined: 10 Mar 2006
Posts: 14
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| Posted: Mon Jan 21, 2008 10:15 am Post subject: |
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"A company purchased 1) a building for $3,200 and 2) land for $2,700 and paid for all of these 1) by cash in the amount of 4,100 and 2) by taking a 10-year mortgage in the amount of 1,800."
DR Land $2,700 (Property, Land & Equipment)
DR Building $3,200 (Property, Land & Equipment)
CR Bank $4,100 (Current Asset)
CR Mortgage $1,800 (Long Term liability)
At the end of each month make 2 Journal entries for the depreciation of the building
CR Depreciation Allowance - Building $xxxxx (Prop, Plant &Equipment)
DB Depreciation Expense - Building $xxxxx |
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Richard Noot
Joined: 20 Aug 2005
Posts: 703
Location: Minnesota
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| Posted: Mon Jan 21, 2008 3:58 pm Post subject: Re: Need help with an example. Please. |
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bonubarno wrote: Hi. I am new to accounting. Can anyone help me with this transaction? Do not know how to record it in the general journal, i.e. what gets debited/credited (step-by-step).
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A company purchased 1) a building for $3,200 and 2) land for $2,700 and paid for all of these 1) by cash in the amount of 4,100 and 2) by taking a 10-year mortgage in the amount of 1,800.
------
I would greatly appreciate your help.
What I want to know is where you can purchase a bldg for only $3200??
Thanks. BB |
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