Indicate for each transaction the account(s) and amount(s) that should be debited and credited. a. On January 1, 2014 purchased land with a usable office building there on for cash of P2,000,000. Tax assessment values: Land, P200,000; Building, P600,000; b. January 1, 2015, purchased land for future building site for a cash of P400,000; an old building on this site, appraised at P20,000 at the date of purchase, is to be torn down immediately.
Indicate for each transaction the account(s) and amount(s) that should be debited and credited. a. On January 1, 2014 purchased land with a usable office building there on for cash of P2,000,000. Tax assessment values: Land, P200,000; Building, P600,000; b. January 1, 2015, purchased land for future building site for a cash of P400,000; an old building on this site, appraised at P20,000 at the date of purchase, is to be torn down immediately.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 2EA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...
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Indicate for each transaction the account(s) and amount(s) that should be debited and credited.
a. On January 1, 2014 purchased land with a usable office building there on for cash of P2,000,000. Tax assessment values: Land, P200,000; Building, P600,000;
b. January 1, 2015, purchased land for future building site for a cash of P400,000; an old building on this site, appraised at P20,000 at the date of purchase, is to be torn down immediately.
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