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Problem two please

Problem 2 Record the journal entries for the following transactions. (27) 1. Land and a Building were purchased for $145,000 cash. The fair market value of land was $100,000. The fair market value of building was $50,000. (6) 2. Land was acquired for $90,000 cash. The business planned to construct a small office building on the land. An old warehouse on the property was torn down at a cost of $6,000. The residual materials were sold for $1,700. Additional costs before construction began included a $1,100 legal fee for work concerning the land purchase, a $7,800 architect's fee, and $14,000 to put in driveways and a parking lot. The new building cost $750,000 to build. Record the journal entry for the purchase of the land, building and land improvement. All items were paid using cash. (10) 3. A piece of equipment was purchased for $55,000 cash. The business had to pay $500 for insurance while is was in transit and $1,000 for transportation charges. Once the equipment was at the business they paid $3,000 to assemble, install and test the equipment before use. The company also purchased an insurance policy to protect from fire, theft or damage of $1,500. Record the journal entry for the purchase of this equipment. (6) 4. The business decides to trade a piece of equipment they own for delivery truck from another business. The equipment they have cost them $25,500 when they purchased it and has a fair market value of $15,750. Record the acquisition of the delivery truck with the trade of the equipment. (5) Particulars Date #1 Debit Credit #2 #3 #4

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