Virginia Equipment, Inc., sold and issued 4,000 shares for $20 per share on January 1, 20B. On the same day, the company purchased a piece of land valued at $30,000 and a building valued at $80,000 The building will be used for 40 years and has a zero estimated salvage (residual) value. The company uses straight-line depreciation.
Required:
Prepare the general journal entries to record the share issue and the purchase of the land and building on January 1 and the depreciation expense on December 31, 20B.

Question

Quizplus · Accepted Answer

The Answer of Virginia Equipment, Inc., sold and issued 4,000 shares for $20 per share on January 1, 20B. On the same day, the company purchased a piece of land valued at $30,000 and a building valued at $80,000 The building will be used for 40 years and has a zero estimated salvage (residual) value. The company uses straight-line depreciation.
Required:
Prepare the general journal entries to record the share issue and the purchase of the land and building on January 1 and the depreciation expense on December 31, 20B.