Assets 1 and 2 These assets were purchased as a lump sum for $167,400 cash. The following information was gathered: Description Initial Cost on Seller's Books Depreciation to Date on Seller's Books Book Value on Seller's Books Appraised Value Machinery $58.500 $27,000 $31,500 $160,000 Office furniture 22,500 9,000 13.500 40,000 Asset 3 This machine was acquired by making a $22.500 down payment and issuing a $67,500, 1-year, zero-interest-bearing note. The note is to be paid off in at the end of the first year. It was estimated that the asset could have been purchased outright for $81.900. Asset 4 This machinery was acquired by trading in used machinery. (The exchange lacks commercial substance.) Facts concerning the trade-in are as follows: Cast of machinery traded $135,000 Accumulated depreciation to date of sale 54,000 Fair value of machinery traded 86,400 Cash received 18,000 Fair value of machinery acquired 68,400 Asset 5 Machinery was acquired by issuing 1,000 shares of $1 par value common stock. The stock was actively traded and had a market value of $6 per share. Construction of Building A building was constructed on land purchased last year at a cost of $108,000. Construction began on March 1 and was completed on September 1. The payments to the contractor were as follows: Date Payment 3/1 $180,000 5/1 270,000 6/1 90,000 9/1 360,000 To finance construction of the building, a $540,000, 10% construction loan was taken out on March 1. The loan was repaid on September 1. The firm had $360,000 of other outstanding debt during the year at a borrowing rate of 12%. Record the acquisition of each of these assets. (List all debit entries before credit entries. Round intermediate calculations to 5 decimal places, eg. 1.25124 and final answer to O decimal places eg. 58,971. Credit account titles are automatically indented when amount is entered. Account Titles and Explanation Acquisition of Assets 1 and 2 Machinery Equipment Cash Acquisition of Asset 3 Machinery Interest Expense Cash Notes Payable Acquisition of Asset 4 Cash Machinery Accumulated Depreciation-Machinery Machinery Gain on Disposal of Machinery Acquisition of Asset 5 Machinery Common Stock Paid-in Capital in Excess of Par-Common Stock (To record machinery) Buildings Land Cash Interest Expense (To record land and buildings) Debit Credit