Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Current Attempt in Progress Plant acquisitions for selected companies are as follows. Sheridan Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres

Current Attempt in Progress
Plant acquisitions for selected companies are as follows.
Sheridan Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of
$798,000. At the time of purchase, Torres's assets had the following book and appraisal values.
To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made.
Cash
798,000
Skysong Enterprises purchased store equipment by making a $2,280 cash down payment and signing a 1-year, $26,220,10% note
payable. The purchase was recorded as follows.
Equipment ,31,122
Concord Company purchased office equipment for $21,500, terms 210,n30. Because the company intended to take the discount,
it made no entry until it paid for the acquisition. The entry was:
Equipment
21,500
Cash
21,070
Purchase Discounts
430
Marigold Inc. recently received at zero cost land from the Village of Cardassia as an inducement to locate its business in the Village.
The appraised value of the land is $30,780. The company made no entry to record the land because it had no cost basis.
Swifty Company built a warehouse for $684,000. It could have purchased the building for $843,600. The controller made the
following entry.
Buildings
843,600
Cash
684,000
Profit on Construction
159,600
Prepare the entry that should have been made at the date of each acquisition. (Do not round intermediate calculations and final answers to
0 decimal places e.g.58,971. 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 0 for the amounts. List all debit entries before credit entries.)
image text in transcribed

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

Management Accounting Text Problems And Cases

Authors: M Y Khan, P K Jain

6th Edition

125902668X, 978-1259026683

More Books

Students also viewed these Accounting questions

Question

Explain why P(a Answered: 1 week ago

Answered: 1 week ago