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Suppose you have purchased land, a building, and some equipment. At the time of the acquisition, the land has a current fair value of $80,000, the building's fair value is $53,000, and the equipment's fair value is $19,000. Journalize the lump-sum purchase of the three assets for a total cost of $145,000. Assume you sign a note payable for this amount Prepare the journal entry for the lump-sum purchase. (Record debits first, then credits. Explanations are not required. Round percentages...
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Suppose you have purchased land, a building, and some equipment. At the time of the acquisition, the land has a current fair value of $84,000, the building's fair value is $53,000, and the equipment's fair value is $10,000. Journalize the lump-sum purchase of the three assets for a total cost of $142,000. Assume you sign a note payable for this amount Prepare the journal entry for the lump-sum purchase. (Record debits first, then credits. Explanations are not required. Round percentages...
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On January 1, 2014, Red Rock Brewery purchased a van for $45,000. Red Rock expects the van to have a useful life of six years and a residual value of $9,000. The depreciation method used was straight-line. On December 31, 2017, the van was sold for $22,000 cash. 1. What was the carrying amount of the van at the date of sale? 2. Record the sale of the van on December 31, 2017 Requirement 1. What was the carrying amount...
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On January 1, 2014, Big Rock Brewery purchased a van for $41,000. Big Rock expects the van to have a useful life of four years and a residual value of $6,000. The depreciation method used was straight-line. On December 31, 2017, the van was sold for $20,000 cash. 1. What was the carrying amount of the van at the date of sale? 2. Record the sale of the van on December 31, 2017. Requirement 1. What was the carrying amount...
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Ethel Company purchased a building with a market value of $320,000 and land with a market value of $60,000 on January 1, 2018. Ethel Company paid $40,000 cash and signed a 12-year, 18% mortgage payable for the balance. Requirements 1. Journalize the January 1, 2018, purchase. 2. Journalize the first monthly payment of $5,777 on January 31, 2018. (Round to the nearest dollar.) Requirement 1. Journalize the January 1, 2018, purchase. (Record debits first, then credits. Select explanations on the...
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Solar Energy Consulting 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...
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Pittsfield Sound Center pays $300,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of $198,000, the building's current market value is $99,000, and the equipment's current market value is $33,000. Prepare a schedule allocating the purchase price of $300,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable...
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On January 1, Mitzu Co. pays a lump-sum amount of $2,700,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $708,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $413,000 and is expected to last another 14 years with no salvage value. The land is valued at $1,829,000. The company...
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1. Custom Banners pays $300,000 cash for a group purchase of land, building, and equipment. At the time of acquisition, the land has a market value of $119,000, the building $204,000, and the equipment $17.000. Journalize the lump-sum purchase. First, refer to the information provided and calculate the ratio of each asset's market value to the total for all assets combined. Then, complete the table and calculate the assigned cost for each asset. Total Percentage of Total Market Purchase Price...
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Concord Pet Care Clinic paid $150,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $80,000, the building $64,000, and the equipment $16,000. Journalize the lump-sum purchase of the three assets for a total cost of $150,000, 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...
Suppose you have purchased land, a building, and some equipment. At the time of the acquisition, the land has a current fair value of $80,000, the building's fair value is $53,000, and the equipment's fair value is $19,000. Journalize the lump-sum purchase of the three assets for a total cost of $145,000. Assume you sign a note payable for this amount Prepare the journal entry for the lump-sum purchase. (Record debits first, then credits. Explanations are not required. Round percentages...
Suppose you have purchased land, a building, and some equipment. At the time of the acquisition, the land has a current fair value of $84,000, the building's fair value is $53,000, and the equipment's fair value is $10,000. Journalize the lump-sum purchase of the three assets for a total cost of $142,000. Assume you sign a note payable for this amount Prepare the journal entry for the lump-sum purchase. (Record debits first, then credits. Explanations are not required. Round percentages...
On January 1, 2014, Red Rock Brewery purchased a van for $45,000. Red Rock expects the van to have a useful life of six years and a residual value of $9,000. The depreciation method used was straight-line. On December 31, 2017, the van was sold for $22,000 cash. 1. What was the carrying amount of the van at the date of sale? 2. Record the sale of the van on December 31, 2017 Requirement 1. What was the carrying amount...
On January 1, 2014, Big Rock Brewery purchased a van for $41,000. Big Rock expects the van to have a useful life of four years and a residual value of $6,000. The depreciation method used was straight-line. On December 31, 2017, the van was sold for $20,000 cash. 1. What was the carrying amount of the van at the date of sale? 2. Record the sale of the van on December 31, 2017. Requirement 1. What was the carrying amount...
Ethel Company purchased a building with a market value of $320,000 and land with a market value of $60,000 on January 1, 2018. Ethel Company paid $40,000 cash and signed a 12-year, 18% mortgage payable for the balance. Requirements 1. Journalize the January 1, 2018, purchase. 2. Journalize the first monthly payment of $5,777 on January 31, 2018. (Round to the nearest dollar.) Requirement 1. Journalize the January 1, 2018, purchase. (Record debits first, then credits. Select explanations on the...
Solar Energy Consulting 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...
Pittsfield Sound Center pays $300,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of $198,000, the building's current market value is $99,000, and the equipment's current market value is $33,000. Prepare a schedule allocating the purchase price of $300,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable...
On January 1, Mitzu Co. pays a lump-sum amount of $2,700,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $708,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $413,000 and is expected to last another 14 years with no salvage value. The land is valued at $1,829,000. The company...
1. Custom Banners pays $300,000 cash for a group purchase of land, building, and equipment. At the time of acquisition, the land has a market value of $119,000, the building $204,000, and the equipment $17.000. Journalize the lump-sum purchase. First, refer to the information provided and calculate the ratio of each asset's market value to the total for all assets combined. Then, complete the table and calculate the assigned cost for each asset. Total Percentage of Total Market Purchase Price...
Concord Pet Care Clinic paid $150,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $80,000, the building $64,000, and the equipment $16,000. Journalize the lump-sum purchase of the three assets for a total cost of $150,000, 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...