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Sale of Building - General Journal Entries

 
 
Richard Faulkner
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      07-29-2004, 08:22 PM
Hi,

I have looked through previous posts on Google and cant find anything
which answers my query.

In March I sold a building for 150,000

There was a loan of 23893.33 and solicitors fees of 1036

The fixed asset account shows:

Purchase price 37,500
Various expenditures 21442 (including the above solicitors fees)

How do I create a general journal entry which pays off the loan and
fees, produces a gain, and puts the balance in my bank account?

I am guessing that there may be one set of entries which deals with the
actual movement of the monies, and another which deals with the gain?

Using QB 2004

Many Thanks
--
Richard Faulkner
 
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Tee
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      07-29-2004, 10:45 PM
From my method of recording home sales for my clients who are general
contractors in the US:

Income account for Sold Property to start

Entry would look like:

Sold Property: $150,000
Loan: -$23,893.33
Fixed Asset Acct: -$58,942.00
Balance = $67,164.67 (what goes into the bank as profit)

You should do this from the deposit screen. If you've already deposited the
money you can double-click the deposit to open it. The balance will be what
went into the bank but you'll be accounting for everything on the sales
contract / closing statement.

--
Tara


 
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Mike Block, C.P.A.
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      07-30-2004, 08:34 AM
Richard Faulkner <(E-Mail Removed)> wrote in message news:<(E-Mail Removed)>...
> Hi,
>
> I have looked through previous posts on Google and cant find anything
> which answers my query.
>
> In March I sold a building for 150,000
>
> There was a loan of 23893.33 and solicitors fees of 1036
>
> The fixed asset account shows:
>
> Purchase price 37,500
> Various expenditures 21442 (including the above solicitors fees)
>
> How do I create a general journal entry which pays off the loan and
> fees, produces a gain, and puts the balance in my bank account?
>
> I am guessing that there may be one set of entries which deals with the
> actual movement of the monies, and another which deals with the gain?
>
> Using QB 2004
>
> Many Thanks



To record the sale of building giving effect to the pay off of the
loan and fees you can pass the following journal entry.
Debit Bank A/C by 125070.67
Debit Solicitor Fees Payable A/C by 1036.00
Debit Loans Payable A/C by 23893.33

Credit the fixed asset account
Purchase price 37,500
Various expenditures 21442

Credit Gains on sale of Asset A/C by 91058
 
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Richard Faulkner
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      08-01-2004, 07:38 AM
In message <(E-Mail Removed) >, "Mike
Block, C.P.A." <(E-Mail Removed)> writes
>Richard Faulkner <(E-Mail Removed)> wrote in message
>news:<(E-Mail Removed)>...
>> Hi,
>>
>> I have looked through previous posts on Google and cant find anything
>> which answers my query.
>>
>> In March I sold a building for 150,000
>>
>> There was a loan of 23893.33 and solicitors fees of 1036
>>
>> The fixed asset account shows:
>>
>> Purchase price 37,500
>> Various expenditures 21442 (including the above solicitors fees)
>>
>> How do I create a general journal entry which pays off the loan and
>> fees, produces a gain, and puts the balance in my bank account?
>>
>> I am guessing that there may be one set of entries which deals with the
>> actual movement of the monies, and another which deals with the gain?
>>
>> Using QB 2004
>>
>> Many Thanks

>
>
>To record the sale of building giving effect to the pay off of the
>loan and fees you can pass the following journal entry.
>Debit Bank A/C by 125070.67
>Debit Solicitor Fees Payable A/C by 1036.00
>Debit Loans Payable A/C by 23893.33
>
>Credit the fixed asset account
>Purchase price 37,500
>Various expenditures 21442
>
>Credit Gains on sale of Asset A/C by 91058


Many thanks Mike.

--
Richard Faulkner
 
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