Pittsfela Sound Center paid $200,000 for a group purchase of land, bulding, and equipment At the time of the acquisition, the land had a market value of $105,000, the bulding $84.000, and the equpment$21,000. Journalze the lump-sum prchase of the three assets for a total cost of $200.000. the amount for which the business signed a note payabie. (Record a sngle compound journal enty. Record debits frstthen eredits Select the explanation on the last ine of the joumal entry table)DateAccounts and ExplanationDebitCreditLandBuidingEquomentNotes Payable

Cost of the Land = Total amount paid x Market value of the Land / Total market value of the assets…

Pitfeld Sound Center paid 200.000 tor a group purchase of land, bulding, and equipment A the time of the acquiton, the land had a market value of $105,000, the bulding S4.000, and the equpnent $21.000 Journale the lump-sum purchase of the three assets for a total cost of $200.000, the amourt for which the business siged a note payabie. Record a sngle compound jounal entry Record debits frst then oredits Select the planation on the last ine of the joumal entry table) Date Accounts and Explanation Debit Crede Land Buiding Equoment Nates Payable

Pitfeld Sound Center paid 200.000 tor a group purchase of land, bulding, and equipment A the time of the acquiton, the land had a market value of $105,000, the bulding S4.000, and the equpnent $21.000 Journale the lump-sum purchase of the three assets for a total cost of $200.000, the amourt for which the business siged a note payabie. Record a sngle compound jounal entry Record debits frst then oredits Select the planation on the last ine of the joumal entry table) Date Accounts and Explanation Debit Crede Land Buiding Equoment Nates Payable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Rural Tech Support paid $190,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $100,000, the building $80,000, and the equipment $20,000. Journalize the lump-sum purchase of the three assets for a total cost of $190,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Questor Applications paid $180,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $95,000, the building $76,000, and the equipment $19,000. Journalize the lump-sum purchase of the three assets for a total cost of $180,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit
Concord Pet Care Clinic paid $130,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $70,000, the building $56,000, and the equipment $14,000. Journalize the lump-sum purchase of the three assets for a total cost of $130,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Advanced Automotive paid $200,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $105,000, the building $63,000, and the equipment $42,000. Journalize the lump-sum purchase of the three assets for a total cost of $200,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $315,000. The estimated fair values of the assets are land, $60,000; building, $220,000; and equipment, $80,000. Journalize the purchase using the relative sales value method. Date Account Debit Credit MM/DD/YY 6 of 9
anson company had the folowing machinery aquisitions during the year 1. acquired the machine with an invoice price of 3,000,000 subjectnto a cash discount of 10% which was taken . the entity incured cost of 50,000 in removing the old machine prior to the installation of the new one .Machine supplies were acquired at a cost of the 150,000 . 2. During the early part of current year the entity purchase the machine for 500,000 down on four monthly installment 1,250,000 .the cash price of the machine was 4700,000 . 3. at the beginning of the current year, the entity purchased a machine for 2,000,000 in exchange for a noninterest bearing ntes requiring four payments of 500,000 . the first payment was made at the end of current year . the implicit rate of interest for this note at date of issuance was 10% . The present value of an ordinary annuity of 1 at 10% is 3.17 for four periods. the present value of annuity of 1 in advance at 10% is 3.49 for four periods. 4. at the beginning of…
A building with an appraisal value of $132,577 is made available at an offer price of $159,843. The purchaser acquires the property for $35,884 in cash, a 90-day note payable for $24,556, and a mortgage amounting to $56,520, The cost of the building to be reported on the balance sheet is Oa. $123,959 Ob. S132577 Oc. S116960 Od, S159.843
Friendly Pet Care Clinic paid $130,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a fair value of $70,000, the building $56,000, and the equipment $14,000. Journalize the lump-sum purchase of the three assets for a total cost of $130,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit ...
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $820,000. The estimated market values of the purchased assets are building, $547,250, land, $308,450, land improvements, $29,850, and four vehicles, $109,450. 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $29,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.
Majestic LLC purchased a factory for lump-sum of RO800,000 paid via bank. The fair value of each of the component of the purchase is given below: Land 85000 Building 155000 Equipment 460000 Calculate the amount at which each of the above components shall be recognized on purchase date and write the journal entry for recording purchase transaction.
White purchased land with a current market value of $144,000, a building with a market value of $18,000, and equipment with a market value of $18,000. Journalize the lump-sum purchase of the three assets purchased for a total cost of $170,000 in exchange for a note payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Land Building Equipment Notes payable
Timberly Construction makes a lump -sum purchase of several assets on January 1 at a total cash price of $850,000. The estimated market values of the purchased assets are building, $458, 150; land, $317,900; land improvements, $ 65,450; and four vehicles, $93,500. Required: 1-a. Allocate the lump - sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $30,000 salvage value. 3. Compute the first -year depreciation expense on the land improvements assuming a five-year life and double-declining - balance depreciation.Complete this question by entering your answers in the tabs below.