Please answer this question Exercise 11 LO 4 7 Journal entri

Please answer this question

Exercise 11 (LO 4, 7) Journal entries, identify funds. Belhurst purchased land costing S65,000 for park development. The amount had been encumbered at $70,000. Ten years later, because of a population shift, the park is no longer practical. The city sells the land for $105,000. Prepare journal entries to record the purchase and subsequent sale of the land, indi- cating in what fund or group each entry would be made. Use the following format: Event Fund or Group Entry

Solution

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Event

Fund or group

Particulars

Dr

Cr

Purchase of land

General Fixed asset account group

Land

65000

Investment in general fixed asset - general fund revenues

65000

( Land is being purchased)

Sale

General fund

Cash

105000

Other financing sources

65000

Revenues

40000

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Hope that helps.

Feel free to comment if you need further assistance J

Event	Fund or group	Particulars	Dr	Cr
Purchase of land	General Fixed asset account group	Land	65000
		Investment in general fixed asset - general fund revenues		65000
		( Land is being purchased)
Sale	General fund	Cash	105000
		Other financing sources		65000
		Revenues		40000