E6-22 (similar to) Question Help During 2017, Davis Inc. paid $196,000 for land and built a restaurant in Cobalt, Ontario. Prior to construction, the city of Cobalt charged Davis Inc. $1,000 for a building permit, which Davis Inc. paid. Davis also paid $15,000 for architect's fees. The construction cost of $670,000 was financed by a long-term note payable issued on January 1, 2017, with interest cost of $28,020 paid on December 31, 2017.
The building was completed on September 30, 2017. Davis Inc. will depreciate the building by the straight-line method over 25 years, with an estimated residual value of $35,000. Requirements Requirement 1. Journalize transactions for the following: (Record debits first, then credits. Explanations are not required. Hold all decimals in interim calculations. Round your final answer to the nearest whole dollar.) a. Purchase of the land. Journal Entry Date Accounts Debit Credit. Get Accounting homework help today