The stockholders’ equity accounts of Castle Corporation on January 1, 2015, were as follows
December 29, 2017
Describe the revenue recognition principle.
December 29, 2017

Presented below is a schedule of property dispositions for Frank Thomas Co.

Question
Presented below is a schedule of property dispositions for Frank Thomas Co.

Schedule of Property Dispositions

Accumulated Cash Fair Market Nature of

Cost Depreciation Proceeds Value Disposition
Land $40,000 $31,000 $31 ,000 Condemnation
Building 15,000 __ 3,600 _ Demolition
Warehouse 70,000 $11,000 74,000 74,000 Destruction by fire
Machine 8,000 3,200 900 7,200 Trade-in
Furniture 10,000 7,850 — 3,100 Contribution
Automobile 8,000 3,460 2,960 2,960 Sale

February 15, a condemnation award was received as consideration for unimproved land held prime-as an investment, and on March 31, another parcel of unimproved land to be held as an investments purchased at a cost of $35,000.

Building- April 2, land and building were purchased at a total cost of $75,000, of which 20% was allocated to”–•building on the corporate books. The real estate was acquired with the intention of demolishing the buiding, and this was accomplished during the month of November. Cash proceeds received in November resent the net proceeds from demolition of the building.

Warehouse 3rd June 30, the warehouse was destroyed by fire. The warehouse was purchased January 2, 2004, and depreciated $11,000. On December 27, the insurance proceeds and other funds were used to purchase placement warehouse at a cost of $90,000.

Machine December 26, the machine was exchanged for another machine having a fair market value of $6,300 and cash of $900 was received. (The exchange lacks commercial substance.)

Furniture August 15, furniture was contributed to a qualified charitable organization. No other contributions – ere made or pledged during the year.

Automobile November 3, the automobile was sold to Ozzie Guillen, a stockholder.

Instructions
Indicate how these items would be reported on the income statement of Frank Thomas Co.(AICPA adapted)

 

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