Question

Daily Assignment (1/27/2020) Tow can either a wer the problems directly on this document or use other paper Scan and submit on Canvas by 8 AM on Wednesday, January 27 Problem 1 (Asset Acquisition) yes Industries purchased the following assets and constructed a building as well. All this was done during the current year. Instructions Record the acquisition of each of these assets. Assets 1 and 2: These assets were purchased as a lump sum for $100.000 cash. The following information was gathered. Description initial Cost on Depreciation to Date on Book Value on Appraised Seller's Books Seller's Books Seller's Books Value Machinery $100,000 $50,000 $50,000 $90,000 Equipment 60,000 10,000 30,000 50,000 Isset 3: This machine was acquired by making a $10,000 down payment and issuing a $30,000, 2-year, zero terest-bearing note. The note is to be paid off in two $15,000 installments made at the end of the first and cond years. It was estimated that the asset could have been purchased outright for $35,900.

Answer 1

journal entries:
Date	Acc Title	Debit $	Credit $	percentage value of market price
1&2	Machinery	75000		(100000 * 90000) / (90000+30000)
	Equipment	25000		(100000 * 30000) / (90000+30000)
	Cash		100000
	(being machiney & equipment purchased for $100000 with
	total market value $120000, so recorded on proportionate rate)
3	Machine	35900
	Cash		10000
	Zero interest bearing note		25900	Future value 30000 - discount 4100 = 25900
	(being machine has been purchased on issue of Zero interest note at its present value)