Answer:
Event | Account titles and Explanation | Debit ($) | Credit ($) |
1 | Equipment(37000×97%) | $35,890 | |
Cash | $35,890 | ||
(To record Equipment Purchased on cash) | |||
2 | Equipment($39000/1.10) | 35,455 | |
Discount on Notes Payable | 3,545 | ||
Notes payable | 39,000 | ||
(To record Equipment Purchased ) | |||
3 | Equipment-New(34000+7300) | 41,300 | |
Loss on Equipment | 4,700 | ||
Accumulated depreciation | 14,000 | ||
Cash | 34,000 | ||
Equipment-old | 26,000 | ||
( To record Equipment Purchased Exchange of old one) | |||
4 | Equipment | 36,000 | |
Common stock | 36,000 | ||
( To record Equipment Purchased Exchange in Common stock) |
Exerclse 10-19 (Algo) Acquisition cost; multiple methods [LO10-1, 10-3, 10-4, 10-6] Connors Corporation acquired manufacturing equipment...
Exercise 10-19 (Algo) Acquisition cost; multiple methods [LO10-1, 10-3, 10-4, 10-6) Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use approprlate factor(s) from the tables provided.) 1. The equipment was purchased on account for $37.000. Credit terms were 3/10,n/30. Payment was made within the discount period...
Exercise 10-19 (Algo) Acquisition cost; multiple methods (LO10-1, 10-3, 10-4, 10-6] : Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) : 1. The equipment was purchased on account for $37.000. Credit terms were 3/10. n/30. Payment was made within...
Exercise 10-19 (Algo) Acquisition cost; multiple methods [LO10-1, 10-3, 10-4, 10-6] Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) 1. The equipment was purchased on account for $37,000. Credit terms were 3/10. n/30. Payment was made within the discount...
Problem 10-1 Acquisition costs (LO10-1, 10-2, 10-3, 10-4] Tristar Production Company began operations on September 1, 2018. Listed below are a number of transactions that occurred during its first four months of operations. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) ok 1. On September 1, the company acquired five acres of land with a building that will be used as a...
Problem 10-1 Acquisition costs [LO10-1, 10-2,10-3, 10-4] Tristar Production Company began operations on September 1, 2018. Listed below are a number of transactions that occurred during its first four months of operations. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar...
Problem 10-1 (Static) Acquisition costs [LO10-1, 10-2, 10-3, 10-4) Tristar Production Company began operations on September 1, 2021. Listed below are a number of transactions that occurred during its first four months of operations. (FV of $1. PV of S1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of SD (Use appropriate factors from the tables provided.): 8 1. On September 1, the company acquired five acres of land with a building that will be used as...
Problem 10-5 Acquisition costs; journal entries (LO10-1, 10-3, 10-6, 10-8) Consider each of the transactions below. All of the experniditures were made in cosh. 1 The Edison Company spent $26,000 during the year for experimental purposes in connection with the development of a new product. 2 In Apri, the Marshall Company lost a patent infringement suit and pald the plainntiff $9,000. 3. In March, the Cleanway Laundromat bought equipment Cleanway paid $20,000 down and signed a noninterest bearing note requiring...
During the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc. paying $11,100,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below: 15 Book Value Fair Value Accounts receivable 1,350,000 $ 1,175,000 1,800,000 3100,000 8,100,000 10,725,000 2,100,000 2,100,000 3,600,000 3,225,000 Inventories Property, plant, and points equipment Accounts payable Bonds payable Print Required: Prepare the journal entry to record the acquisition by Brewer Company. (If no entry is required...
Problem 10-7 Nonmonetary exchange [LO10-6] On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: Robers' Asset Phifer's Asset Original cost Accumulated depreciation Fair value $210,000 119,000 77,000 $190,000 111,000 96,000 To equalize the exchange, Phifer paid Robers $19,000 in cash. Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. (If no entry is required for a transaction/event, select "No Journal entry...
Exerclse 10-32 (Algo) Software development costs [LO10-8] On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022 Development costs were incurred as follows: $2,310,000 910,000 510,000 September 30 through Deccember 31, 2021 January 1 through February 28, 2022. March 1 through April 30, 2022 Athens expects a useful life of five years...