Rodriguez Company pays $345,000 for real estate plus $18,285 in
closing costs. The real estate consists of land appraised at
$255,000; land improvements appraised at $102,000; and a building
appraised at $153,000.
Required:
1. Allocate the total cost among the three
purchased assets.
2. Prepare the journal entry to record the
purchase.
1.
Appraised value | % of Appraised value | * total cost of acquisition | Apportioned cost | |
Land | $255,000 | 50% | $363,285 | $181,642.50 |
Land improvement | $102,000 | 20% | $363,285 | $72,657.00 |
Buillding | $153,000 | 30% | $363,285 | $108,985.50 |
Total | $510,000 | 100% |
% of Appraised value = Appraised value / Total appraised value
Appraised cost = % of Appraised value * total cost of acquisition
2. Prepare the journal entry to record the purchase.
General Journal | Debit | Credit |
Land | $181,642.50 | |
Land improvement | $72,657.00 | |
Buillding | $108,985.50 | |
... Cash | $363,285 | |
(To record purchases) |
Rodriguez Company pays $345,000 for real estate plus $18,285 in closing costs. The real estate consists...
Exercise 8-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $345,000 for real estate plus $18,285 in closing costs. The real estate consists of land appraised at $180,000; land improvements appraised at $40,000; and a building appraised at $180,000. Required: 1. Allocate the total cost among the three purchased assets. 2. Prepare the journal entry to record the purchase. Appraised Value Percent of Total Appraised Value x Total Cost of Acquisition = Apportioned Cost Land Land improvements Building...
Rodriguez Company pays $360,000 for real estate plus $19,080 in
closing costs. The real estate consists of land appraised at
$200,000; land improvements appraised at $100,000; and a building
appraised at $200,000.
Required:
1. Allocate the total cost among the three
purchased assets.
2. Prepare the journal entry to record the
purchase
Allocate the total cost among the three purchased assets. (Round your "Apportioned Cost" answers to 2 decimal places.) Appraised Value Percent of Total Appraised Value x Total Cost...
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Exercise 8-3 Lump-sum purchase of plant assets LO C1 Rodriquez Company pays $355,000 for real estate plus $18,815 in closing costs. The real estate consists of land appraised at $196,000; land improvements appraised at $73,500; and a building appraised at $220,500. Required: 1. Allocate the total cost among the three purchased assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost...
[The following information
applies to the questions displayed below.] Rodriguez Company pays
$365,000 for real estate plus $19,345 in closing costs. The real
estate consists of land appraised at $214,200; land improvements
appraised at $61,200; and a building appraised at $234,600.
33.value: 4.00 pointsRequired information Allocate the total cost
among the three purchased assets. (Round your "Apportioned Cost"
answers to 2 decimal places.)
The following information applies to the questions displayed below.] Rodriguez Company pays $365,000 for real estate plus...
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Help me pla
z Company pays $355,000 for real estate plus $18,815 in closing costs, The real estate consists of land land improvements appratsed at $75,000: and a building appraised at $200,000 1. Allocate the total cost among the three purchased assets. 2. Prepare the journal entry to record the purchase Answer is not complete. plete this question by entering your answers in the tabs below. Allocate the total cost among the three purchased assets. (Round your "Apportioned Cost" answers...
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