August 5th. A small ofice building is purchased for 320,000 by paying 32,00 down and taking out a fifteen-year, 4%, 288,000 mortgage note from first american bank. Principal and interest will be paid quarterly. An appraisal performed on this date indicated that the land id worth 150,000 and the remaining balance of the purchase price is attribuable to the building. The owners estimate that the building will have an estimated useful life for 30 years and an estimated salvage value of 26,000.
August 20th. A client mails the firm 1,200 check as a deposit for upcoming work. As of august 31st 500 of this work had been completled.August 28th service revenue collected during august totaled 6,670. the uncollected billings totaled 4,360.