Question

Presented below is information related to Cheyenne Company. 1. On July 6, Cheyenne Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land $398,000 Buildings 1,194,000 Equipment 796,000 Total $2,388,000 Cheyenne Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $239 per share on the date of the purchase of the property. 2. Cheyenne Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.) Repairs to building $95,710 Construction of bases for equipment to be installed later 121,940 Driveways and parking lots 118,180 Remodeling of office space in building, including new partitions and walls 156,570 Special assessment by city on land 18,030 3. On December 20, the company paid cash for equipment, $282,100, subject to a 2% cash discount, and freight on equipment of $9,810. Prepare entries on the books of Cheyenne Company for these transactions. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit

Answer 1