1.2.

Presented below is information related to Pharoah Company. 1. On July 6, Pharoah Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land $400,000 Buildings 1,200,000 Equipment 800,000 Total $2,400,000 Pharoah Company gave 12,200 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the purchase of the property. 2. Pharoah Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.) Repairs to building $294,000 Construction of bases for equipment to be installed later 378,000 Driveways and parking lots 341,600 Remodeling of office space in building, including new partitions and walls 450,800 Special assessment by city on land 50,400 3. On December 20, the company paid cash for equipment, $728,000, subject to a 2% cash discount, and freight on equipment of $29,400. No. Account Titles and Explanation Debit Credit 1. | 2. 3. Bridgeport Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter $18,012 Cash paid 11,400 Cost of old melter (5-year life, $798 salvage value) 12,768 Accumulated Depreciation-old melter (straight-line) 7,182 Secondhand fair value of old melter 5,928 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Bridgeport's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2019. (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 O for the amounts.) No. Account Titles and Explanation Debit Credit (a) Exchange has commercial substance: (To record current depreciation.) (To record exchange of the equipment.) Exchange lacks commercial substance: (To record current depreciation.) (To record exchange of the equipment.)