Exercise 10-13

Presented below is information related to Headland Company.

1.On July 6, Headland Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is:

See complete question attached.

Exercise 10-13 Presented below is information related to Headland Company. 1. On July 6, Headland Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land $396,000 Buildings 1,188,000 Equipmen t Total 792,000 $2,376,000 Headland Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $252 per share on the date of the purchase of the property. 2. Headland Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.) Repairs to building $99,590 Construction of bases for equipment to be installed later 126,240 Driveways and parking lots 130,410 Remodeling of office space in building, including new partitions and walls 171,890 Special assessment by city on land 18,330 3. On December 20, the company paid cash for equipment, $270,400, subject to a 2% cash discount, and freight on equipment of $10,800. Prepare entries on the books of Headland Company for these transactions. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer 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.) No Account Titles and . Explanation 1. Debit Credit 2. 3