Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Asset Acquisition, Including Beach gives the company acres 637 Self Construction, Eklow are tranactms relased , Duliw Company E10-12 (L01,2,4) (Entries for cquiy 5 acres

image text in transcribed
Asset Acquisition, Including Beach gives the company acres 637 Self Construction, Eklow are tranactms relased , Duliw" Company E10-12 (L01,2,4) (Entries for cquiy 5 acres of land as a plant site. The fair valoe of this land is determined (a) The City of Pebble Beach gives be $81,000. 13,000 shares of common erty has been appraised asted on any echange, but a block of 100 shares was sold by a stockholder t2 The stock of Dufiner Comany a par value of 550 per share are issued in exchange for land and stick with $80000. of which SSOOO has to malkeated to und and no coat (b) a fair value shares was sold by another stockholder 18 months ago at 558 per share. ago at 565 per share, per share, and a block of 200 the accounts for Materials, Direct Labot, and Overhead f entry has been made to remove from constructed the amounts properly machinery constructed during the year. The following information is given rela (c) No argeable tive to costs of the machinery to plant asset accounts for $12.500 900 15,000 2.700 Additional rate applied to regular goperations 60% of direct labor cost Fixed Cost of similar machinery if it had Ieen purchased froa outside suppliers 44.000 Instructions entries on the books of Duffner Company to record these transactions. joumal isition of Assets) Presented below is information related to Zonker Company E10-13 (LO1,4) 01,4) ( Entries red the plant assets of Doonesbury Company, which had discontinued operations. The On July 6, appraised value of the property is 6 Zonker Company acquired Land 5 400,000 1,200,000 2400,000 12.500 shares of its $100 par value common stock in exchange. The stock had a market price of S168 Equipment s00000 Zonker Company gave per share on the date of the purchase of the property 2. Zonker Company expended the following amounts in cash between July 6 and December 15, the date when it first occu- pied the building Repairs Construction of bases for equipment to be instaled later Driveways and parking lots Remodeling of office space in building including new partitions and walls Special assessment by city on land to building $105,000 135,000 122,000 161,000 18,000 3. On December 20, the company paid cash for equipment 5280.000 subject to a 2% cash discount, and freight on equipment of $10,500 Instructions entries on the books of Zonker Company for these transactions E10-14 (L04) (Purchase of Equipment with Zero-Interest-Bearing Deb) Chippewas Inc. has decided to purchase equip- ment from Central Michigan Industries on January 2, 2017, to expand its production capacity to meet customers' demand for its product.Chippewas issues an $800,000, 5-year, zero-intenest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 12%. The company will pay off the note in five S160000 install. ments due at the end of each year over the life of the note Instructions Round to nearest dollar in all computations.) (a) Prepare the journal entry(ies) at the date of purchase b) Prepare the journal entrylies) at the end of the first year to record the payment and interest, assuming that the company employs the effective-interest method. S() Prepare the journal entrylies) at the end of the second year to record the payment and interest. id) Assuming that the equipment had a 10-year life and no salvage value, prepare the journal entry necessary to record depreciation in the first year. (Straight-line depreciation is employed.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Art And Science Of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones

15th Canadian Edition

0136692087, 9780136692089

More Books

Students also viewed these Accounting questions