During 2021, Ming's Book Store paid $486,000 for land and built a store in Naperville, Illinois. Prior to construction, the city of Naperville charged Ming's $1,000 for a building permit, which Ming's paid. Ming's also paid $15,000 for architect's fees. The construction cost of $670,000 was financed by a long-term note payable, with interest costs of $28,020 paid at the completion of the project. The building was completed June 30, 2021. Ming's depreciates the building using the straight-line method over 35 years, with estimated residual value of $330,000. Read the requirements. c. Joumalize depreciation on the building for 2021. Journal Entry Date Accounts Depreciation Expense-Building Accumulated Depreciation Building Debit Less: 5,486 Credit 5,486 Requirement 2. Report Ming's plant assets on the company's balance sheet at December 31, 2021. Balance Sheet Plant assets:
During 2021, Ming's Book Store paid $486,000 for land and built a store in Naperville, Illinois. Prior to construction, the city of Naperville charged Ming's $1,000 for a building permit, which Ming's paid. Ming's also paid $15,000 for architect's fees. The construction cost of $670,000 was financed by a long-term note payable, with interest costs of $28,020 paid at the completion of the project. The building was completed June 30, 2021. Ming's depreciates the building using the straight-line method over 35 years, with estimated residual value of $330,000. Read the requirements. c. Joumalize depreciation on the building for 2021. Journal Entry Date Accounts Depreciation Expense-Building Accumulated Depreciation Building Debit Less: 5,486 Credit 5,486 Requirement 2. Report Ming's plant assets on the company's balance sheet at December 31, 2021. Balance Sheet Plant assets:
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 55P
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Question
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During 2021, Ming's Book Store paid $486,000 for land and built a store in Naperville, Illinois. Prior to construction, the city of Naperville charged Ming's $1,000 for a building permit,
which Ming's paid. Ming's also paid $15,000 for architect's fees. The construction cost of $670,000 was financed by a long-term note payable, with interest costs of $28,020 paid at the
completion of the project. The building was completed June 30, 2021. Ming's depreciates the building using the straight-line method over 35 years, with estimated residual value of
$330,000.
Read the requirements.
c. Joumalize depreciation on the building for 2021.
Journal Entry
Date
Accounts
Depreciation Expense-Building
Accumulated Depreciation Building
Balance Sheet
Plant assets:
Debit
Less:
5,486
Credit
5,486
Requirement 2. Report Ming's plant assets on the company's balance sheet at December 31, 2021.
***
Check answer
ot
MO
ot
MO
ot
MO
ot
MO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6cbdddef-84e8-420e-8fee-b1022ef9dd48%2F7be47c43-885c-4d22-ac22-87087918085f%2Fl5ad9a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:K
During 2021, Ming's Book Store paid $486,000 for land and built a store in Naperville, Illinois. Prior to construction, the city of Naperville charged Ming's $1,000 for a building permit,
which Ming's paid. Ming's also paid $15,000 for architect's fees. The construction cost of $670,000 was financed by a long-term note payable, with interest costs of $28,020 paid at the
completion of the project. The building was completed June 30, 2021. Ming's depreciates the building using the straight-line method over 35 years, with estimated residual value of
$330,000.
Read the requirements.
c. Joumalize depreciation on the building for 2021.
Journal Entry
Date
Accounts
Depreciation Expense-Building
Accumulated Depreciation Building
Balance Sheet
Plant assets:
Debit
Less:
5,486
Credit
5,486
Requirement 2. Report Ming's plant assets on the company's balance sheet at December 31, 2021.
***
Check answer
ot
MO
ot
MO
ot
MO
ot
MO
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