business journals inc
2011
Help accountant?
I have to write journal entries for various transactions. But there are a couple I do not understand. The company is a family business of 50% by the father and 25% each by his two children. Transaction A: Doers Group Inc. agreed to sell its land and buildings to one real estate investors. The sale price is $ 146,000. Doers Party Inc is not moving. It will continue to do business in its current location and rent the space from the new owner in 2008 and beyond. The store fixtures are not sold. The building has an original cost of $ 80,000. Transaction B: Doers Group Inc. will use $ 60,000 of proceeds from the sale of the land and building to repay its notes payable balance. I need input newspaper for two transactions.
A transaction cost of land was $ 80k and is now sold for $ 146,000. You did not mention depreciation so I assume that the building has never been so depreciated and the net book value is the cost of $ 80k. Journal Entry: Dr. Cash (buyer's land) 146 000 Land Cr / pack cost 80,000 Cr Gain on sale of land / bldg 66000 That sounds like a business so I did not know why you were given the ownership percentage. If it is a partnership, the gain wld be split at 33k and 16.5k to father 2 children each Transaction Dr B Notes payable 60k 60k Cr species
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