Question

during 2016, Liang's bookstore paid $484,000 for land and built a store in Georgetown. prior to construction, the city of Georgetown charged Liang's $1,300 for a building permit, which Liang's paid. Liang's also paid %15,300 for architect's fees. the construction cost of $685,000 was fascinated by a long-term note payable with interest cost of $28,220 paid at completion of the project. the building was completed June 30, 2016. Liang's depreciates the building by the straight-line method over 35 years with estimated residual value of $336.000.

requirements:

1. journalize transaction for the following

a. purchase of the land

b. all the cost chargeable to the building in a single entry

c. depreciation on the building for 2016

2. report Liang's bookstore's plant assets on the company's balance sheet at December 31, 2016.

3. what's Liang's income statement for the year ended December 31, 2016, report for these facts

Answer 1