Prepare journal entries, Prepare journal entries for the

Prepare journal entries

Assignment Help Accounting Basics

Reference no: EM132215297

Question - Prepare journal entries for the following:

1. Annual liability insurance premiums are payable on January 1^st of each year. The premium amount paid in January 2017 was $84,000.

2. On March 1^st, the firm purchased Sales Building 4 costing $650,000. Your firm paid forty percent (40%) of the building's cost in cash and issued a 5% 5-year note payable for the balance. The note requires annual interest payments. The expected life of the facility is 20 years, with no salvage value. Your firm uses the straight-line method of depreciation. The book values (October 31, 2017) of other PP&E currently on the books (also with no salvage value) are as follows:

Asset	Historical Cost	Accumulated Depreciation	Remaining Life
Land	$241,500	$-
Sales Building 1	406,000	223,300	9
Sales Building 2	425,500	171,400	12
Sales Building 3	350,075	87,519	15
Administration Building	141,075	42,323	14
Total	$1,567,150	$524,541

3. Administrative and Sales employee wages of $201,550 were earned and paid during fiscal 2018. In addition, during November 2017, the firm paid wages owed from the prior year. Unpaid wages for Fiscal 2018, which will be paid in November 2018, amount to $38,225.

4. On October 25, 2018, the firm sold Sales Building 2 for $260,000. The firm received payment in cash.

Reference no: EM132215297

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