Homework Help: Financial Accounting

Posted by Diane on Thursday, February 16, 2012 at 3:21pm.

Prepare the general journal entries for the following transactions:
Jan 2, 2011 -- Purchased land with a building on it for $750,000. The land is worth $300,000. Paid $150,000 cash down and signed a mortgage payable for the balance.
Dec. 31, 2011--Depreciation is computed using the straight line method. The estimated salvage value of the building is $75,000 and has an estimated life of 20 years.
July 1, 2012 -- The building and land are sold for $825,000 cash.

Question: I have done the journal entries but I am $150,000 short on credit side. What am I doing wrong? It's not balancing.

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