Plant acquisitions for selected companies are as follows.
1. Headland Industries Inc. acquired land,
buildings, and equipment from a bankrupt company, Torres Co., for a
lump-sum price of $994,000. At the time of purchase, Torres’s
assets had the following book and appraisal values.
Book Values |
Appraisal Values |
|||||
---|---|---|---|---|---|---|
Land |
$284,000 | $213,000 | ||||
Buildings |
355,000 | 497,000 | ||||
Equipment |
426,000 | 426,000 |
To be conservative, the company decided to take the lower of the
two values for each asset acquired. The following entry was
made.
Land | 213,000 | |||
Buildings | 355,000 | |||
Equipment | 426,000 | |||
Cash | 994,000 |
2. Sage Enterprises purchased store equipment by
making a $2,840 cash down payment and signing a 1-year, $32,660,
10% note payable. The purchase was recorded as follows.
Equipment | 38,766 | |||
Cash | 2,840 | |||
Notes Payable | 32,660 | |||
Interest Payable | 3,266 |
3. Pronghorn Company purchased office equipment
for $21,800, terms 2/10, n/30. Because the company intended to take
the discount, it made no entry until it paid for the acquisition.
The entry was:
Equipment | 21,800 | |||
Cash | 21,364 | |||
Purchase Discounts | 436 |
4. Stellar Inc. recently received at zero cost
land from the Village of Cardassia as an inducement to locate its
business in the Village. The appraised value of the land is
$38,340. The company made no entry to record the land because it
had no cost basis.
5. Pearl Company built a warehouse for $852,000.
It could have purchased the building for $1,050,800. The controller
made the following entry.
Buildings | 1,050,800 | |||
Cash | 852,000 | |||
Profit on Construction | 198,800 |
Prepare the entry that should have been made at the date of each
acquisition. (Round intermediate calculations to 5
decimal palces, e.g. 0.56487 and final answers to 0 decimal places,
e.g. 5,275. 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 |
---|---|---|---|
1. |
enter an account title for the first transaction |
enter a debit amount |
enter a credit amount |
enter an account title for the first transaction |
enter a debit amount |
enter a credit amount |
|
enter an account title for the first transaction |
enter a debit amount |
enter a credit amount |
|
enter an account title for the first transaction |
enter a debit amount |
enter a credit amount |
|
2. |
enter an account title for the second transaction |
enter a debit amount |
enter a credit amount |
enter an account title for the second transaction |
enter a debit amount |
enter a credit amount |
|
enter an account title for the second transaction |
enter a debit amount |
enter a credit amount |
|
3. |
enter an account title for the third transaction |
enter a debit amount |
enter a credit amount |
enter an account title for the third transaction |
enter a debit amount |
enter a credit amount |
|
4. |
enter an account title for the fourth transaction |
enter a debit amount |
enter a credit amount |
enter an account title for the fourth transaction |
enter a debit amount |
enter a credit amount |
|
5. |
enter an account title for the fifth transaction |
enter a debit amount |
enter a credit amount |
enter an account title for the fifth transaction |
enter a debit amount |
enter a credit amount |
Plant acquisitions for selected companies are as follows. 1. Headland Industries Inc. acquired land, buildings, and...
Plant acquisitions for selected companies are as follows. 1. Pina Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $910,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values Land Buildings Equipment $260,000 325,000 390,000 Appraisal Values $195,000 455,000 390,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land...
Plant acquisitions for selected companies are as follows. 1. Tamarisk Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $770,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values Appraisal Values Land Buildings $220,000 275.000 330.000 $165,000 385.000 330,000 Equipment To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made Land...
Plant acquisitions for selected companies are as follows. 1. Marin Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $728,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values Appraisal Values Land $208,000 $156,000 Buildings 364,000 260,000 312,000 Equipment 312.000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land...
Plant acquisitions for selected companies are as follows. 1. Flint Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $952,000. At the time of purchase, Torres's assets had the following book and appraisal values. Appraisal Values Land Buildings Equipment Book Values $272,000 340,000 408,000 $204,000 476,000 408,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land...
Plant acquisitions for selected companies are as follows. 1. Carla Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $938,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land $268,000 $201,000 Buildings 335,000 469,000 Equipment 402,000 402,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land...
Exercise 10-6 Plant acquisitions for slected companies are as follows 1. Larkspur Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $742,000. At the time of purchase, Torres's assets had the following book and appraisal values Book Values $212,000 265,000 318,000 isal Values Land $159,000 371,000 318,000 Buildings To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made....
Current Attempt in Progress Plant acquisitions for selected companies are as follows. 1. Whispering Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $896,000. At the time of purchase, Torres's assets had the following book and appraisal values. Appraisal Values Book Values -rt $256,000 $192,000 Land Buildings 320,000 448,000 Equipment 384,000 384,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The...
1. Marigold Industries Inc. acquired land,
buildings, and equipment from a bankrupt company, Torres Co., for a
lump-sum price of $770,000. At the time of purchase, Torres’s
assets had the following book and appraisal values.
Book Values
Appraisal Values
Land
$220,000
$165,000
Buildings
275,000
385,000
Equipment
330,000
330,000
To be conservative, the company decided to take the lower of the
two values for each asset acquired. The following entry was
made.
Land
165,000
Buildings
275,000
Equipment
330,000
Cash
770,000
2....
E10.6 (LO 1, 3) are as follows 1. Belanna Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $700,000. At the time of purchase, Torres's assets had the following book and appraisal values. (Correction of Improper Cost Entries) Plant acquisitions for selected companies Book Values Appraisal Values less Land $200,000 $150,000 350,000 Buildings Equipment 250,000 300,000 300,000 To be conservative, the company decided to take the lower of the two values...
1. Whispering Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $868,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land $248,000 $186,000 Buildings 310,000 434,000 Equipment 372,000 372,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 186,000 Buildings 310,000 Equipment 372,000 Cash 868,000 2....