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X Record the entry to write the depreciable assets down to their carrying value in their...
Drabinski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of land,...
Drabinski Ltd. decided on 1 July 20X3 to dispose of an
asset group consisting of land, a building, and equipment. An
active plan of disposal is being carried out, and sale is highly
probable within the following year. The assets’ carrying values and
estimated recoverable amounts at 1 July 20X3 are as follows:
Cost/ Carrying Value/Estimated Recoverable Amount/
Land $400,000 $400,000 $420,000
Building 2,700,000 1,500,000 900,000
Equipment 900,000 400,000 300,000
TOTAL $4,000,000 $2,300,000 $1,620,000
On 31 December 20X3, the net recoverable amount of the group is...
Solar Energy Consulting paid $130,000 for a group purchase of land, building, and equipment. At 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...
Question Help The Sawyer Group sold one of its plant assets on August 1 of the...
Question Help The Sawyer Group sold one of its plant assets on August 1 of the current year for $500,000. The asset had an original cost of $900,000 and an estimated residual value of $18,000. Sawyer used the straight-line method of depreciation assuming an estimated useful life of twelve years. The asset was in service for five years as of January 1 of the current year. Read the requirements Requirement a. Prepare the journal entry required to record the depreciation...
Chapter 8: Accounting for Long-Term Operational Assets Basket Purchase Allocation, Depreciation, Gain Loss on Sale. Bishop...
Chapter 8: Accounting for Long-Term Operational Assets Basket Purchase Allocation, Depreciation, Gain Loss on Sale. Bishop Enterprises purchased land, a building, and some equipment on January 1, 2018 for $400,000. An appraiser valued the land at $50,000, the building at $350,000, and the equipment at $100,000. The building has a useful life of 20 years and the company expects the residual value to be $30,000. The equipment has a useful life of 5 years with an expected residual value of...
Prepare journal entry to record purchase, depreciation expense on building, depreciation expense ...
prepare journal entry to record purchase,
depreciation expense on building,
depreciation expense on land improvements
Problem 10-1A Plant asset costs, depreclatlon methods LO c1, P1 Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1.2017, at a total cash price of $820.000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building. $465,500: land, $275,500: land improvements,...
E8-4 Computing and Recording Cost and Depreciation of Assets in a Basket Purchase (Straight-Line Depreciation) LO8-2,...
E8-4 Computing and Recording Cost and Depreciation of Assets in a Basket Purchase (Straight-Line Depreciation) LO8-2, 8-3 Zeidler Company bought a building and the land on which the building is located for a total cash price of $178,500. The company paid transfer costs of $2,100. Renovation costs on the building were $20,780. An independent appraiser provided market values for the land, $120,000, and building, $280,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the...
14. Purchased goodwill. Company A has the following net assets: Liabilities & Equity Carrying Value Assets...
14. Purchased goodwill. Company A has the following net assets: Liabilities & Equity Carrying Value Assets Cash Accounts receivable Inventory PPE (net) Carrying Value $25,000 Current liabilities 35,000 Common stock 42,000 Retained earnings $55,000 100,000 100,000 153,000 Totals $255,000 $255,000 The fair values of Company A are Assets Cash Accounts receivable Inventory PPE (net) Patents Liabilities Fair Value $25,000 35,000 122,000 205,000 18,000 (55,000 Fair value of net assets $350,000 Company B purchases Company A for $400,000. Write the journal...
Prepare the journal entry to record the sale of the shelving units.
As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc. sold shelving units (recorded as Equipment) that were 10 years old for $950 cash. The shelves originally cost $7,000 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $500. .1. Complete the table below, indicating the account, amount, and direction of the effect on disposal. Assume that depreciation has been recorded to the...
Exercise 8-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $405,405 for real estate...
Exercise 8-3 Lump-sum purchase of plant assets LO C1
Rodriguez Company pays $405,405 for real estate with land, land
improvements, and a building. Land is appraised at $192,000; land
improvements are appraised at $72,000; and a building is appraised
at $216,000.
Required:
1. Allocate the total cost among the three
assets.
2. Prepare the journal entry to record the
purchase.
Problem 8-6A Part 3
Record the sale of the used machine for $92,000 cash.
Record the insurance settlement received of...
Pitney Co. purchased an office building, land, and furniture for $747,600 cash. The appraised value of the assets was as...
Pitney Co. purchased an office building, land, and furniture for $747,600 cash. The appraised value of the assets was as follows: Land $ 92,104 Building 267,940 Furniture 477,268 Total $ 837,312 Required a. Compute the amount to be recorded on the books for each asset. b. Show the purchase in a horizontal statements model like the following one: c. Prepare the general journal entry to record the purchase.
Drabinski Ltd. decided on 1 July 20X3 to dispose of an
asset group consisting of land, a building, and equipment. An
active plan of disposal is being carried out, and sale is highly
probable within the following year. The assets’ carrying values and
estimated recoverable amounts at 1 July 20X3 are as follows:
Cost/ Carrying Value/Estimated Recoverable Amount/
Land $400,000 $400,000 $420,000
Building 2,700,000 1,500,000 900,000
Equipment 900,000 400,000 300,000
TOTAL $4,000,000 $2,300,000 $1,620,000
On 31 December 20X3, the net recoverable amount of the group is...
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...
Question Help The Sawyer Group sold one of its plant assets on August 1 of the current year for $500,000. The asset had an original cost of $900,000 and an estimated residual value of $18,000. Sawyer used the straight-line method of depreciation assuming an estimated useful life of twelve years. The asset was in service for five years as of January 1 of the current year. Read the requirements Requirement a. Prepare the journal entry required to record the depreciation...
Chapter 8: Accounting for Long-Term Operational Assets Basket Purchase Allocation, Depreciation, Gain Loss on Sale. Bishop Enterprises purchased land, a building, and some equipment on January 1, 2018 for $400,000. An appraiser valued the land at $50,000, the building at $350,000, and the equipment at $100,000. The building has a useful life of 20 years and the company expects the residual value to be $30,000. The equipment has a useful life of 5 years with an expected residual value of...
prepare journal entry to record purchase,
depreciation expense on building,
depreciation expense on land improvements
Problem 10-1A Plant asset costs, depreclatlon methods LO c1, P1 Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1.2017, at a total cash price of $820.000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building. $465,500: land, $275,500: land improvements,...
E8-4 Computing and Recording Cost and Depreciation of Assets in a Basket Purchase (Straight-Line Depreciation) LO8-2, 8-3 Zeidler Company bought a building and the land on which the building is located for a total cash price of $178,500. The company paid transfer costs of $2,100. Renovation costs on the building were $20,780. An independent appraiser provided market values for the land, $120,000, and building, $280,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the...
14. Purchased goodwill. Company A has the following net assets: Liabilities & Equity Carrying Value Assets Cash Accounts receivable Inventory PPE (net) Carrying Value $25,000 Current liabilities 35,000 Common stock 42,000 Retained earnings $55,000 100,000 100,000 153,000 Totals $255,000 $255,000 The fair values of Company A are Assets Cash Accounts receivable Inventory PPE (net) Patents Liabilities Fair Value $25,000 35,000 122,000 205,000 18,000 (55,000 Fair value of net assets $350,000 Company B purchases Company A for $400,000. Write the journal...
Exercise 8-3 Lump-sum purchase of plant assets LO C1
Rodriguez Company pays $405,405 for real estate with land, land
improvements, and a building. Land is appraised at $192,000; land
improvements are appraised at $72,000; and a building is appraised
at $216,000.
Required:
1. Allocate the total cost among the three
assets.
2. Prepare the journal entry to record the
purchase.
Problem 8-6A Part 3
Record the sale of the used machine for $92,000 cash.
Record the insurance settlement received of...
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