During 2016, Liang's Book Store paid $484,000 for land and built a store in Georgetown. Prior to

Question:

During 2016, Liang's Book Store 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 financed 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.
1. Journalize transactions for the following:
a. Purchase of the land.
b. All the costs chargeable to the building in a single entry.
c. Depreciation on the building for 2016
Explanations are not required.
2. Report Liang's Book Store's plant assets on the company's at December 31, 2016.
3. What will Liang's income statement for the year ended December 31, 2016, report for this situation?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...