The city council donated land with a fair market value of $5,000 to Runners Corporation as an incentive for future expansion.
2007-08-23 06:36:14 · 4 answers · asked by Ly H 1 in Business & Finance ➔ Other - Business & Finance
Debit land (a fixed asset) for $5,000
Credit contribution revenue for $5,000
2007-08-23 06:45:22 · answer #1 · answered by Homeslice 4 · 0⤊ 0⤋
Your question is too vauge....who's entry is it? THe entry is different based upon who's books you are looking at. If it were the city's books, it would be something like this.
DR Charity/donation expense
CR Land (at cost)
In the case of the city's books, $5,000 is irrelevant using GAAP. Land is recorded at cost. Only marketable securities is recorded at FMV.
If your question focuses on the receiver (Runners) . No entry under GAAP becasue the acquisition value/historical cost from the city is zero.
2007-08-27 05:46:20 · answer #2 · answered by TheGarlicButterSaw 3 · 0⤊ 0⤋
Credit $5000 to your assets (if there is one called "land")
Debit your cash (I think)
But will the land gain or lose value over time?
2007-08-23 06:44:37 · answer #3 · answered by primoa1970 7 · 0⤊ 2⤋
What's the question?
2007-08-23 06:40:00 · answer #4 · answered by Anonymous · 0⤊ 1⤋