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Exercise 10-6 Plant acquisitions for selected companies are as follows. 1. Blossom Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co.,

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Exercise 10-6 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 $1,036,000. At the time of purchase, Torres's assets had the following book and appraisal values Apr Va k Vale 2200 and s0 370000 uldng sI0 tonent 400 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. 220 and Buaings to 3000 4000 Cch 10000 2. Blue Enterprises purchased store equipment by making a $2,960 cash down payment and signing a 1-year, $34,040, 10 % note payable. The purchase was recorded as follows. toenet 404 C Notes Poale Int Payable 1404 3. Kingbird Company purchased office equipment for $18,400, terms 2/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was: Cash 02 Pnchase Dacsunts 4. Oriole 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 $39,960. The company made no entry to record the land because it had no cost basis. 5. Waterway Company built a warehouse for $888,000. It could have purchased the building for $1,095, 200. The controller made the following entry uldngs 1100 n Construcion 2200 Prepare the entry that should have been made at the date of each acquisition. (Round intermediate calculations to 5 decimal palces, e.g. 0.56487 and final answers to 0 decimal places, e.g. 5,27s 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 o for the amounts.) TdE Cick if you weuld ke to Shew Work fer this question Shaw Wa Exercise 10-6 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 $1,036,000. At the time of purchase, Torres's assets had the following book and appraisal values Apr Va k Vale 2200 and s0 370000 uldng sI0 tonent 400 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. 220 and Buaings to 3000 4000 Cch 10000 2. Blue Enterprises purchased store equipment by making a $2,960 cash down payment and signing a 1-year, $34,040, 10 % note payable. The purchase was recorded as follows. toenet 404 C Notes Poale Int Payable 1404 3. Kingbird Company purchased office equipment for $18,400, terms 2/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was: Cash 02 Pnchase Dacsunts 4. Oriole 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 $39,960. The company made no entry to record the land because it had no cost basis. 5. Waterway Company built a warehouse for $888,000. It could have purchased the building for $1,095, 200. The controller made the following entry uldngs 1100 n Construcion 2200 Prepare the entry that should have been made at the date of each acquisition. (Round intermediate calculations to 5 decimal palces, e.g. 0.56487 and final answers to 0 decimal places, e.g. 5,27s 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 o for the amounts.) TdE Cick if you weuld ke to Shew Work fer this question Shaw Wa

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