Jams and Jellies Inc. (JJI) is a private company using ASPE owned and operated by June Johnston.
Question:
Jams and Jellies Inc. (JJI) is a private company using ASPE owned and operated by June Johnston. JJI’s operation is a farm that grows a variety of fruits that is then processed into different kinds of jams and jellies to sell at farmers markets and to specialty grocery stores. In June 2021, June decided to sell a piece of land in a separate geographical area that had been purchased for future expansion. June decided not to expand and sold the land to her husband Orville Johnston for $300,000 cash. The land had a carrying amount of $50,000 since it been purchased a number of years ago. The purchase price was based on what June’s nephew a new real estate agent thought the land was probably worth.
Required:
1) Provide the journal entry for the sale of the land by JJI.
2) Explain fully your rationale for your journal entry.
Expert Answer:
1 Journal Entry to record transaction CASH Ac Dr 300000 LAND AcCr 50000 GAIN ON SALE AcCr 250000 Bei... View the full answer
