Prepare the journal entries to record the transactions on


On April 1, 2017, Blue Company received a condemnation award of $576,200 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new state highway. The land and building cost $80,400 and $375,200, respectively, when they were acquired. At April 1, 2017, the accumulated depreciation relating to the building amounted to $214,400. On August 1, 2017, Blue purchased a piece of replacement property for cash. The new land cost $120,600, and the new building cost $536,000.

Prepare the journal entries to record the transactions on April 1 and August 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Prepare the journal entries to record the transactions on
Reference No:- TGS02587470

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)