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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 lumpsum price of
$ 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
Skysong Enterprises purchased store equipment by making a $ cash down payment and signing a year, $ note
payable. The purchase was recorded as follows.
Equipment
Concord Company purchased office equipment for $ terms Because the company intended to take the discount,
it made no entry until it paid for the acquisition. The entry was:
Equipment
Cash
Purchase Discounts
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 $ The company made no entry to record the land because it had no cost basis.
Swifty Company built a warehouse for $ It could have purchased the building for $ The controller made the
following entry.
Buildings
Cash
Profit on Construction
Prepare the entry that should have been made at the date of each acquisition. Do not round intermediate calculations and final answers to
decimal places eg 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 for the amounts. List all debit entries before credit entries.
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