1.) Anderson Corporation has purchased a group of assets for $ 20 comma 500$20,500. The assets...
1.) Anderson Corporation has purchased a group of assets for
$ 20 comma 500$20,500.
The assets and their relative market values are listed below.
|
Land |
$7,300 |
|
Equipment |
3,000 |
|
Building |
3,200 |
Which of the following amounts would be debited to the Land account? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
2.)The Golden Company issues $520,000 o f77%,10−year bonds at 108 on March 31, 2019. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight- line method for amortization. The journal entry to record the issuance includes a ________.
Homework Answers
1) Total market value = 7300+3000+3200 = 13500
Amount allocated to Land account = 7300/13500 = 54.07% = 20500*54.07% = 11084
2) Journal entry
| Date | account and explanation | Debit | Credit |
| Cash (520000*1.08) | 561600 | ||
| Bonds payable | 520000 | ||
| Premium on bonds payable | 41600 |
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