Exercise 10-12

Plant acquisitions for selected companies are as follows:

1.Blossom Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $758,000. At the time of purchase, Torres's assets had the following book and appraisal values:

Book Value

Appraisal Value

Land$214,000$148,000Buildings245,000349,000Equipment365,000365,000

Blossom Industries decided to take the lower of the two values for each asset it acquired. The following entry was made:

Land

148,000

Buildings

245,000

Equipment

365,000

Cash

758,000

Blossom Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 20% of the cost of the building. Because of the unique design and materials needed to replace the roof, the contractors stated that the roof structure is currently worth 14% of the value of the building purchase.2.Hari Enterprises purchased equipment by making a $1,700 cash down payment and signing a $24,100, one-year, 10% note payable. The purchase was recorded as follows:

Equipment

28,210Cash1,700Notes Payable24,100Interest Payable2,4103.Kim Company purchased equipment for $21,900, terms 3/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was:

Equipment21,900Cash21,243Purchase Discounts6574.Kaiser Inc. recently received land at zero cost from the Village of Chester as an inducement to locate its business in the village. The land's appraised value was $35,000. The company made no entry to record the land because it had no cost basis.5.Zimmerman Company built a warehouse for $607,000. It could have contracted out and purchased the building for $732,000. The controller made the following entry:

Buildings732,000Cash607,000Sales Revenue

125,000

Prepare the entry that should have been made at the date of each acquisition.(Credit account titles are automatically indented when the 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. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.)

No.

Account Titles and Explanation

Debit

Credit

1.

Interest Payable

Buildings - Roof

Land

Notes Payable

Donation Revenue

Accounts Payable

Purchase Discounts

Accounts Receivable

Buildings

Buildings - Structure

Cash

Revenue - Government Grants

No Entry

Equipment

Gain

Buildings - Roof

Buildings

Notes Payable

Gain

No Entry

Revenue - Government Grants

Purchase Discounts

Interest Payable

Land

Equipment

Accounts Receivable

Buildings - Structure

Donation Revenue

Accounts Payable

Cash

Buildings - Structure

Equipment

Revenue - Government Grants

Gain

Accounts Receivable

Interest Payable

Land

Notes Payable

No Entry

Cash

Buildings - Roof

Purchase Discounts

Donation Revenue

Accounts Payable

Buildings

Purchase Discounts

Cash

Donation Revenue

Accounts Payable

Accounts Receivable

Buildings

Buildings - Roof

Buildings - Structure

Equipment

Revenue - Government Grants

Gain

Interest Payable

Land

No Entry

Notes Payable

Revenue - Government Grants

Interest Payable

Equipment

Land

No Entry

Accounts Payable

Accounts Receivable

Buildings

Cash

Donation Revenue

Gain

Buildings - Roof

Notes Payable

Buildings - Structure

Purchase Discounts

2.

Buildings - Roof

Equipment

Accounts Receivable

Land

Buildings

Revenue - Government Grants

Donation Revenue

Buildings - Structure

Cash

Purchase Discounts

Gain

Accounts Payable

Interest Payable

Notes Payable

No Entry

Land

Interest Payable

Cash

No Entry

Purchase Discounts

Revenue - Government Grants

Donation Revenue

Equipment

Buildings

Accounts Payable

Accounts Receivable

Buildings - Roof

Notes Payable

Buildings - Structure

Gain

Interest Payable

Cash

Revenue - Government Grants

Donation Revenue

Buildings - Roof

Land

Buildings - Structure

Equipment

Gain

Purchase Discounts

Accounts Payable

Notes Payable

Accounts Receivable

Buildings

No Entry

3.

Land

Accounts Receivable

Cash

Purchase Discounts

Interest Payable

Notes Payable

No Entry

Revenue - Government Grants

Donation Revenue

Buildings - Structure

Accounts Payable

Buildings

Buildings - Roof

Equipment

Gain

Notes Payable

Buildings

No Entry

Interest Payable

Buildings - Roof

Land

Purchase Discounts

Revenue - Government Grants

Buildings - Structure

Cash

Accounts Receivable

Equipment

Gain

Donation Revenue

Accounts Payable

4.

Accounts Payable

Cash

Buildings - Structure

Equipment

Accounts Receivable

Buildings

Buildings - Roof

Gain

No Entry

Purchase Discounts

Land

Notes Payable

Interest Payable

Revenue - Government Grants

Donation Revenue

Cash

Accounts Receivable

Donation Revenue

Accounts Payable

Buildings

Buildings - Roof

Equipment

Notes Payable

Buildings - Structure

Gain

Interest Payable

Land

No Entry

Revenue - Government Grants

Purchase Discounts

5.

Land

Accounts Payable

Accounts Receivable

Donation Revenue

Cash

Buildings - Structure

Purchase Discounts

Buildings

Revenue - Government Grants

Equipment

Gain

Buildings - Roof

Interest Payable

Notes Payable

No Entry

Revenue - Government Grants

Donation Revenue

Purchase Discounts

Accounts Payable

Gain

Interest Payable

Buildings - Structure

Accounts Receivable

Buildings

Buildings - Roof

Cash

Equipment

Land

Notes Payable

No Entry

LINK TO TEXT

Prepare the correcting entry that is required in each case to correct the accounts. In other words, do not simply reverse the incorrect entry and replace it with the entryin the part above.(Credit account titles are automatically indented when the 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. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.)

No.

Account Titles and Explanation

Debit

Credit

1.

Donation Revenue

Land

Purchase Discounts

No Entry

Equipment

Revenue - Government Grants

Buildings - Structure

Accounts Receivable

Sales Revenue

Buildings

Accounts Payable

Buildings - Roof

Cash

Gain

Notes Payable

Interest Payable

Notes Payable

No Entry

Revenue - Government Grants

Interest Payable

Equipment

Land

Buildings

Purchase Discounts

Donation Revenue

Sales Revenue

Accounts Payable

Gain

Accounts Receivable

Buildings - Roof

Buildings - Structure

Cash

Equipment

Notes Payable

Purchase Discounts

Buildings - Structure

Buildings

Interest Payable

Accounts Receivable

Donation Revenue

Cash

Buildings - Roof

Land

Gain

No Entry

Revenue - Government Grants

Sales Revenue

Accounts Payable

Gain

No Entry

Buildings - Structure

Accounts Payable

Revenue - Government Grants

Notes Payable

Cash

Equipment

Donation Revenue

Interest Payable

Purchase Discounts

Land

Sales Revenue

Accounts Receivable

Buildings

Buildings - Roof

Buildings - Structure

Cash

Equipment

Accounts Payable

Notes Payable

Interest Payable

Sales Revenue

Purchase Discounts

Land

Revenue - Government Grants

Donation Revenue

Accounts Receivable

Buildings

Buildings - Roof

Gain

No Entry

2.

Gain

Land

Buildings - Structure

No Entry

Interest Payable

Sales Revenue

Buildings

Notes Payable

Cash

Purchase Discounts

Revenue - Government Grants

Equipment

Buildings - Roof

Donation Revenue

Accounts Payable

Accounts Receivable

Land

Donation Revenue

Notes Payable

No Entry

Purchase Discounts

Gain

Sales Revenue

Interest Payable

Accounts Receivable

Revenue - Government Grants

Accounts Payable

Buildings

Buildings - Roof

Buildings - Structure

Cash

Equipment

3.

Interest Payable

Gain

Land

Notes Payable

Revenue - Government Grants

Cash

Donation Revenue

Sales Revenue

No Entry

Buildings - Structure

Purchase Discounts

Equipment

Accounts Payable

Accounts Receivable

Buildings - Roof

Buildings

Equipment

Buildings

Land

Buildings - Roof

Donation Revenue

Revenue - Government Grants

Buildings - Structure

Cash

Gain

Interest Payable

Notes Payable

No Entry

Purchase Discounts

Sales Revenue

Accounts Receivable

Accounts Payable

Buildings

Accounts Payable

Purchase Discounts

Gain

No Entry

Accounts Receivable

Donation Revenue

Sales Revenue

Interest Payable

Revenue - Government Grants

Buildings - Roof

Equipment

Buildings - Structure

Cash

Land

Notes Payable

Interest Payable

Revenue - Government Grants

Purchase Discounts

Accounts Payable

Buildings - Roof

Land

Donation Revenue

Equipment

Sales Revenue

Accounts Receivable

Buildings

Gain

Buildings - Structure

Notes Payable

Cash

No Entry

4.

Notes Payable

Buildings - Structure

Accounts Receivable

Donation Revenue

Sales Revenue

Buildings

Purchase Discounts

No Entry

Cash

Buildings - Roof

Equipment

Gain

Interest Payable

Revenue - Government Grants

Accounts Payable

Land

No Entry

Buildings - Structure

Accounts Payable

Notes Payable

Gain

Purchase Discounts

Cash

Buildings - Roof

Revenue - Government Grants

Accounts Receivable

Equipment

Interest Payable

Land

Donation Revenue

Sales Revenue

Buildings

5.

Sales Revenue

Land

Cash

Buildings - Structure

Revenue - Government Grants

Gain

Buildings

Buildings - Roof

Equipment

Accounts Payable

Interest Payable

Purchase Discounts

Notes Payable

No Entry

Donation Revenue

Accounts Receivable

Interest Payable

No Entry

Sales Revenue

Accounts Payable

Purchase Discounts

Land

Gain

Accounts Receivable

Buildings

Revenue - Government Grants

Buildings - Roof

Buildings - Structure

Cash

Notes Payable

Equipment

Donation Revenue

LINK TO TEXT

Question Attempts: 0 of 3 usedSAVE FOR LATER

SUBMIT ANSWER

Exercise 10-12

Plant acquisitions for selected companies are as follows:

1.Blossom Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $758,000. At the time of purchase, Torres's assets had the following book and appraisal values:

Book Value

Appraisal Value

Land$214,000$148,000Buildings245,000349,000Equipment365,000365,000

Blossom Industries decided to take the lower of the two values for each asset it acquired. The following entry was made:

Land

148,000

Buildings

245,000

Equipment

365,000

Cash

758,000

Blossom Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 20% of the cost of the building. Because of the unique design and materials needed to replace the roof, the contractors stated that the roof structure is currently worth 14% of the value of the building purchase.2.Hari Enterprises purchased equipment by making a $1,700 cash down payment and signing a $24,100, one-year, 10% note payable. The purchase was recorded as follows:

Equipment

28,210Cash1,700Notes Payable24,100Interest Payable2,4103.Kim Company purchased equipment for $21,900, terms 3/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was:

Equipment21,900Cash21,243Purchase Discounts6574.Kaiser Inc. recently received land at zero cost from the Village of Chester as an inducement to locate its business in the village. The land's appraised value was $35,000. The company made no entry to record the land because it had no cost basis.5.Zimmerman Company built a warehouse for $607,000. It could have contracted out and purchased the building for $732,000. The controller made the following entry:

Buildings732,000Cash607,000Sales Revenue

125,000

Prepare the entry that should have been made at the date of each acquisition.(Credit account titles are automatically indented when the 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. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.)

No.

Account Titles and Explanation

Debit

Credit

1.

Interest Payable

Buildings - Roof

Land

Notes Payable

Donation Revenue

Accounts Payable

Purchase Discounts

Accounts Receivable

Buildings

Buildings - Structure

Cash

Revenue - Government Grants

No Entry

Equipment

Gain

Buildings - Roof

Buildings

Notes Payable

Gain

No Entry

Revenue - Government Grants

Purchase Discounts

Interest Payable

Land

Equipment

Accounts Receivable

Buildings - Structure

Donation Revenue

Accounts Payable

Cash

Buildings - Structure

Equipment

Revenue - Government Grants

Gain

Accounts Receivable

Interest Payable

Land

Notes Payable

No Entry

Cash

Buildings - Roof

Purchase Discounts

Donation Revenue

Accounts Payable

Buildings

Purchase Discounts

Cash

Donation Revenue

Accounts Payable

Accounts Receivable

Buildings

Buildings - Roof

Buildings - Structure

Equipment

Revenue - Government Grants

Gain

Interest Payable

Land

No Entry

Notes Payable

Revenue - Government Grants

Interest Payable

Equipment

Land

No Entry

Accounts Payable

Accounts Receivable

Buildings

Cash

Donation Revenue

Gain

Buildings - Roof

Notes Payable

Buildings - Structure

Purchase Discounts

2.

Buildings - Roof

Equipment

Accounts Receivable

Land

Buildings

Revenue - Government Grants

Donation Revenue

Buildings - Structure

Cash

Purchase Discounts

Gain

Accounts Payable

Interest Payable

Notes Payable

No Entry

Land

Interest Payable

Cash

No Entry

Purchase Discounts

Revenue - Government Grants

Donation Revenue

Equipment

Buildings

Accounts Payable

Accounts Receivable

Buildings - Roof

Notes Payable

Buildings - Structure

Gain

Interest Payable

Cash

Revenue - Government Grants

Donation Revenue

Buildings - Roof

Land

Buildings - Structure

Equipment

Gain

Purchase Discounts

Accounts Payable

Notes Payable

Accounts Receivable

Buildings

No Entry

3.

Land

Accounts Receivable

Cash

Purchase Discounts

Interest Payable

Notes Payable

No Entry

Revenue - Government Grants

Donation Revenue

Buildings - Structure

Accounts Payable

Buildings

Buildings - Roof

Equipment

Gain

Notes Payable

Buildings

No Entry

Interest Payable

Buildings - Roof

Land

Purchase Discounts

Revenue - Government Grants

Buildings - Structure

Cash

Accounts Receivable

Equipment

Gain

Donation Revenue

Accounts Payable

4.

Accounts Payable

Cash

Buildings - Structure

Equipment

Accounts Receivable

Buildings

Buildings - Roof

Gain

No Entry

Purchase Discounts

Land

Notes Payable

Interest Payable

Revenue - Government Grants

Donation Revenue

Cash

Accounts Receivable

Donation Revenue

Accounts Payable

Buildings

Buildings - Roof

Equipment

Notes Payable

Buildings - Structure

Gain

Interest Payable

Land

No Entry

Revenue - Government Grants

Purchase Discounts

5.

Land

Accounts Payable

Accounts Receivable

Donation Revenue

Cash

Buildings - Structure

Purchase Discounts

Buildings

Revenue - Government Grants

Equipment

Gain

Buildings - Roof

Interest Payable

Notes Payable

No Entry

Revenue - Government Grants

Donation Revenue

Purchase Discounts

Accounts Payable

Gain

Interest Payable

Buildings - Structure

Accounts Receivable

Buildings

Buildings - Roof

Cash

Equipment

Land

Notes Payable

No Entry

LINK TO TEXT

Prepare the correcting entry that is required in each case to correct the accounts. In other words, do not simply reverse the incorrect entry and replace it with the entryin the part above.(Credit account titles are automatically indented when the 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. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.)

No.

Account Titles and Explanation

Debit

Credit

1.

Donation Revenue

Land

Purchase Discounts

No Entry

Equipment

Revenue - Government Grants

Buildings - Structure

Accounts Receivable

Sales Revenue

Buildings

Accounts Payable

Buildings - Roof

Cash

Gain

Notes Payable

Interest Payable

Notes Payable

No Entry

Revenue - Government Grants

Interest Payable

Equipment

Land

Buildings

Purchase Discounts

Donation Revenue

Sales Revenue

Accounts Payable

Gain

Accounts Receivable

Buildings - Roof

Buildings - Structure

Cash

Equipment

Notes Payable

Purchase Discounts

Buildings - Structure

Buildings

Interest Payable

Accounts Receivable

Donation Revenue

Cash

Buildings - Roof

Land

Gain

No Entry

Revenue - Government Grants

Sales Revenue

Accounts Payable

Gain

No Entry

Buildings - Structure

Accounts Payable

Revenue - Government Grants

Notes Payable

Cash

Equipment

Donation Revenue

Interest Payable

Purchase Discounts

Land

Sales Revenue

Accounts Receivable

Buildings

Buildings - Roof

Buildings - Structure

Cash

Equipment

Accounts Payable

Notes Payable

Interest Payable

Sales Revenue

Purchase Discounts

Land

Revenue - Government Grants

Donation Revenue

Accounts Receivable

Buildings

Buildings - Roof

Gain

No Entry

2.

Gain

Land

Buildings - Structure

No Entry

Interest Payable

Sales Revenue

Buildings

Notes Payable

Cash

Purchase Discounts

Revenue - Government Grants

Equipment

Buildings - Roof

Donation Revenue

Accounts Payable

Accounts Receivable

Land

Donation Revenue

Notes Payable

No Entry

Purchase Discounts

Gain

Sales Revenue

Interest Payable

Accounts Receivable

Revenue - Government Grants

Accounts Payable

Buildings

Buildings - Roof

Buildings - Structure

Cash

Equipment

3.

Interest Payable

Gain

Land

Notes Payable

Revenue - Government Grants

Cash

Donation Revenue

Sales Revenue

No Entry

Buildings - Structure

Purchase Discounts

Equipment

Accounts Payable

Accounts Receivable

Buildings - Roof

Buildings

Equipment

Buildings

Land

Buildings - Roof

Donation Revenue

Revenue - Government Grants

Buildings - Structure

Cash

Gain

Interest Payable

Notes Payable

No Entry

Purchase Discounts

Sales Revenue

Accounts Receivable

Accounts Payable

Buildings

Accounts Payable

Purchase Discounts

Gain

No Entry

Accounts Receivable

Donation Revenue

Sales Revenue

Interest Payable

Revenue - Government Grants

Buildings - Roof

Equipment

Buildings - Structure

Cash

Land

Notes Payable

Interest Payable

Revenue - Government Grants

Purchase Discounts

Accounts Payable

Buildings - Roof

Land

Donation Revenue

Equipment

Sales Revenue

Accounts Receivable

Buildings

Gain

Buildings - Structure

Notes Payable

Cash

No Entry

4.

Notes Payable

Buildings - Structure

Accounts Receivable

Donation Revenue

Sales Revenue

Buildings

Purchase Discounts

No Entry

Cash

Buildings - Roof

Equipment

Gain

Interest Payable

Revenue - Government Grants

Accounts Payable

Land

No Entry

Buildings - Structure

Accounts Payable

Notes Payable

Gain

Purchase Discounts

Cash

Buildings - Roof

Revenue - Government Grants

Accounts Receivable

Equipment

Interest Payable

Land

Donation Revenue

Sales Revenue

Buildings

5.

Sales Revenue

Land

Cash

Buildings - Structure

Revenue - Government Grants

Gain

Buildings

Buildings - Roof

Equipment

Accounts Payable

Interest Payable

Purchase Discounts

Notes Payable

No Entry

Donation Revenue

Accounts Receivable

Interest Payable

No Entry

Sales Revenue

Accounts Payable

Purchase Discounts

Land

Gain

Accounts Receivable

Buildings

Revenue - Government Grants

Buildings - Roof

Buildings - Structure

Cash

Notes Payable

Equipment

Donation Revenue

LINK TO TEXT

Question Attempts: 0 of 3 usedSAVE FOR LATER

SUBMIT ANSWER

Exercise 10-12

Plant acquisitions for selected companies are as follows:

1.Blossom Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $758,000. At the time of purchase, Torres's assets had the following book and appraisal values:

Book Value

Appraisal Value

Land$214,000$148,000Buildings245,000349,000Equipment365,000365,000

Blossom Industries decided to take the lower of the two values for each asset it acquired. The following entry was made:

Land

148,000

Buildings

245,000

Equipment

365,000

Cash

758,000

Blossom Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 20% of the cost of the building. Because of the unique design and materials needed to replace the roof, the contractors stated that the roof structure is currently worth 14% of the value of the building purchase.2.Hari Enterprises purchased equipment by making a $1,700 cash down payment and signing a $24,100, one-year, 10% note payable. The purchase was recorded as follows:

Equipment

28,210Cash1,700Notes Payable24,100Interest Payable2,4103.Kim Company purchased equipment for $21,900, terms 3/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was:

Equipment21,900Cash21,243Purchase Discounts6574.Kaiser Inc. recently received land at zero cost from the Village of Chester as an inducement to locate its business in the village. The land's appraised value was $35,000. The company made no entry to record the land because it had no cost basis.5.Zimmerman Company built a warehouse for $607,000. It could have contracted out and purchased the building for $732,000. The controller made the following entry:

Buildings732,000Cash607,000Sales Revenue

125,000

Prepare the entry that should have been made at the date of each acquisition.(Credit account titles are automatically indented when the 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. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.)

No.

Account Titles and Explanation

Debit

Credit

1.

Interest Payable

Buildings - Roof

Land

Notes Payable

Donation Revenue

Accounts Payable

Purchase Discounts

Accounts Receivable

Buildings

Buildings - Structure

Cash

Revenue - Government Grants

No Entry

Equipment

Gain

Buildings - Roof

Buildings

Notes Payable

Gain

No Entry

Revenue - Government Grants

Purchase Discounts

Interest Payable

Land

Equipment

Accounts Receivable

Buildings - Structure

Donation Revenue

Accounts Payable

Cash

Buildings - Structure

Equipment

Revenue - Government Grants

Gain

Accounts Receivable

Interest Payable

Land

Notes Payable

No Entry

Cash

Buildings - Roof

Purchase Discounts

Donation Revenue

Accounts Payable

Buildings

Purchase Discounts

Cash

Donation Revenue

Accounts Payable

Accounts Receivable

Buildings

Buildings - Roof

Buildings - Structure

Equipment

Revenue - Government Grants

Gain

Interest Payable

Land

No Entry

Notes Payable

Revenue - Government Grants

Interest Payable

Equipment

Land

No Entry

Accounts Payable

Accounts Receivable

Buildings

Cash

Donation Revenue

Gain

Buildings - Roof

Notes Payable

Buildings - Structure

Purchase Discounts

2.

Buildings - Roof

Equipment

Accounts Receivable

Land

Buildings

Revenue - Government Grants

Donation Revenue

Buildings - Structure

Cash

Purchase Discounts

Gain

Accounts Payable

Interest Payable

Notes Payable

No Entry

Land

Interest Payable

Cash

No Entry

Purchase Discounts

Revenue - Government Grants

Donation Revenue

Equipment

Buildings

Accounts Payable

Accounts Receivable

Buildings - Roof

Notes Payable

Buildings - Structure

Gain

Interest Payable

Cash

Revenue - Government Grants

Donation Revenue

Buildings - Roof

Land

Buildings - Structure

Equipment

Gain

Purchase Discounts

Accounts Payable

Notes Payable

Accounts Receivable

Buildings

No Entry

3.

Land

Accounts Receivable

Cash

Purchase Discounts

Interest Payable

Notes Payable

No Entry

Revenue - Government Grants

Donation Revenue

Buildings - Structure

Accounts Payable

Buildings

Buildings - Roof

Equipment

Gain

Notes Payable

Buildings

No Entry

Interest Payable

Buildings - Roof

Land

Purchase Discounts

Revenue - Government Grants

Buildings - Structure

Cash

Accounts Receivable

Equipment

Gain

Donation Revenue

Accounts Payable

4.

Accounts Payable

Cash

Buildings - Structure

Equipment

Accounts Receivable

Buildings

Buildings - Roof

Gain

No Entry

Purchase Discounts

Land

Notes Payable

Interest Payable

Revenue - Government Grants

Donation Revenue

Cash

Accounts Receivable

Donation Revenue

Accounts Payable

Buildings

Buildings - Roof

Equipment

Notes Payable

Buildings - Structure

Gain

Interest Payable

Land

No Entry

Revenue - Government Grants

Purchase Discounts

5.

Land

Accounts Payable

Accounts Receivable

Donation Revenue

Cash

Buildings - Structure

Purchase Discounts

Buildings

Revenue - Government Grants

Equipment

Gain

Buildings - Roof

Interest Payable

Notes Payable

No Entry

Revenue - Government Grants

Donation Revenue

Purchase Discounts

Accounts Payable

Gain

Interest Payable

Buildings - Structure

Accounts Receivable

Buildings

Buildings - Roof

Cash

Equipment

Land

Notes Payable

No Entry

LINK TO TEXT

Prepare the correcting entry that is required in each case to correct the accounts. In other words, do not simply reverse the incorrect entry and replace it with the entryin the part above.(Credit account titles are automatically indented when the 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. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.)

No.

Account Titles and Explanation

Debit

Credit

1.

Donation Revenue

Land

Purchase Discounts

No Entry

Equipment

Revenue - Government Grants

Buildings - Structure

Accounts Receivable

Sales Revenue

Buildings

Accounts Payable

Buildings - Roof

Cash

Gain

Notes Payable

Interest Payable

Notes Payable

No Entry

Revenue - Government Grants

Interest Payable

Equipment

Land

Buildings

Purchase Discounts

Donation Revenue

Sales Revenue

Accounts Payable

Gain

Accounts Receivable

Buildings - Roof

Buildings - Structure

Cash

Equipment

Notes Payable

Purchase Discounts

Buildings - Structure

Buildings

Interest Payable

Accounts Receivable

Donation Revenue

Cash

Buildings - Roof

Land

Gain

No Entry

Revenue - Government Grants

Sales Revenue

Accounts Payable

Gain

No Entry

Buildings - Structure

Accounts Payable

Revenue - Government Grants

Notes Payable

Cash

Equipment

Donation Revenue

Interest Payable

Purchase Discounts

Land

Sales Revenue

Accounts Receivable

Buildings

Buildings - Roof

Buildings - Structure

Cash

Equipment

Accounts Payable

Notes Payable

Interest Payable

Sales Revenue

Purchase Discounts

Land

Revenue - Government Grants

Donation Revenue

Accounts Receivable

Buildings

Buildings - Roof

Gain

No Entry

2.

Gain

Land

Buildings - Structure

No Entry

Interest Payable

Sales Revenue

Buildings

Notes Payable

Cash

Purchase Discounts

Revenue - Government Grants

Equipment

Buildings - Roof

Donation Revenue

Accounts Payable

Accounts Receivable

Land

Donation Revenue

Notes Payable

No Entry

Purchase Discounts

Gain

Sales Revenue

Interest Payable

Accounts Receivable

Revenue - Government Grants

Accounts Payable

Buildings

Buildings - Roof

Buildings - Structure

Cash

Equipment

3.

Interest Payable

Gain

Land

Notes Payable

Revenue - Government Grants

Cash

Donation Revenue

Sales Revenue

No Entry

Buildings - Structure

Purchase Discounts

Equipment

Accounts Payable

Accounts Receivable

Buildings - Roof

Buildings

Equipment

Buildings

Land

Buildings - Roof

Donation Revenue

Revenue - Government Grants

Buildings - Structure

Cash

Gain

Interest Payable

Notes Payable

No Entry

Purchase Discounts

Sales Revenue

Accounts Receivable

Accounts Payable

Buildings

Accounts Payable

Purchase Discounts

Gain

No Entry

Accounts Receivable

Donation Revenue

Sales Revenue

Interest Payable

Revenue - Government Grants

Buildings - Roof

Equipment

Buildings - Structure

Cash

Land

Notes Payable

Interest Payable

Revenue - Government Grants

Purchase Discounts

Accounts Payable

Buildings - Roof

Land

Donation Revenue

Equipment

Sales Revenue

Accounts Receivable

Buildings

Gain

Buildings - Structure

Notes Payable

Cash

No Entry

4.

Notes Payable

Buildings - Structure

Accounts Receivable

Donation Revenue

Sales Revenue

Buildings

Purchase Discounts

No Entry

Cash

Buildings - Roof

Equipment

Gain

Interest Payable

Revenue - Government Grants

Accounts Payable

Land

No Entry

Buildings - Structure

Accounts Payable

Notes Payable

Gain

Purchase Discounts

Cash

Buildings - Roof

Revenue - Government Grants

Accounts Receivable

Equipment

Interest Payable

Land

Donation Revenue

Sales Revenue

Buildings

5.

Sales Revenue

Land

Cash

Buildings - Structure

Revenue - Government Grants

Gain

Buildings

Buildings - Roof

Equipment

Accounts Payable

Interest Payable

Purchase Discounts

Notes Payable

No Entry

Donation Revenue

Accounts Receivable

Interest Payable

No Entry

Sales Revenue

Accounts Payable

Purchase Discounts

Land

Gain

Accounts Receivable

Buildings

Revenue - Government Grants

Buildings - Roof

Buildings - Structure

Cash

Notes Payable

Equipment

Donation Revenue

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