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

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Plant acquisitions for selected companies are as follows. 1. Headland 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. Book Values Appraisal Values $171,000 Land $228,000 Buildings 285,000 399,000 Equipment 342,000 342,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 171.000 Buildings 285,000 Equipment 342,000 Cash 798,000 2. Sage 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. 31.122 Equipment Cash 2.280 26 22 2. Sage 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. 31,122 Equipment Cash Notes Payable Interest Payable 2,280 26,220 2,622 3. Pronghorn Company purchased office equipment for $21,500, terms 2/10,6/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was: 21,500 Equipment Cash Purchase Discounts 21,070 430 4.Stellar 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. 5. Pearl Company built a warehouse for $684,000. It could have purchased the building for $843,600. The controller made the following entry 843,600 Buildings Cash Profit on Construction 684,000 159.600 Prepare the entry that should have been made at the date of each acquisition. (Round Intermediate calculations to 5 decimal palces, eg. 0.56487 and final answers to declmal places, eg,5,275. 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 Ofor the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 3

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