During 2018, Cheng's Book Store paid $482,000 for land and built a store in Cleveland,...
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During 2018, Cheng's Book Store paid $482,000 for land and built a store in Cleveland, Ohio. Prior to construction, the city of Cleveland charged Cheng's $1,600 for a building permit, which Cheng's paid. Cheng's also paid $15,600 for architect's fees. The construction cost of $700,000 was financed by a long-term note payable, with interest costs of $29,480 paid at the completion of the project. The buiding was completed June 30, 2018. Cheng's depreciates the building using the straight-line method over 35 years, with estimated residual value of $339,000 Read the requirements. Requirement 1. Journalize transactions for the following (explanations are not required): a. Purchase of the land, b. All the costs chargeable to the building in a single entry, and c. Depreciation on the building for 2018. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Journalize the purchase of the land. Journal Entry Date Debit Credit b. Journalize all the costs chargeable to the building in a single entry. Journal Entry Date Debit Credit Choose from any list or enter any number in the input fields and then continue to the next
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