Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
Plant acquisitions for selected companies are as follows. 1. Vaughn Industries Inc acquired land, buildings, and equipment from a bankrupt company, Torres Co, for a lump-sum price of $910,000. 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. 2. Bramble Enterprises purchased store equipment by making a \$2,600 cash down payment and signing a 1-year, $29,900,10% note payable. The purchase was recorded as follows. 3. Sunland Company purchased office equipment for $19,200, 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: 4. Coronado 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 $35,100. The company made no entry to record the land because it had no cost basis. 5. Whispering Company built a warehouse for $780,000. It could have purchased the building for $962,000. The controller made the followingentry. Prepare the entry that should heve been made at the date of each acquisition (Do not round intermedlate calculations and final answers to Odecimal ploces es. 58,971. Credit account titles are automotically indented when amount is entered. Do not indent manually, If no entry is required, welect "No Entry' for the account titles and enter O for the amounts. List all debit entries before credit entries.) Prepare the entry that should have been made at the date of each acquisition. (Do not round intermediate caiculations ond fral onswers lo Odecimal placeses. 58,971 . Crodit occount tilles ore outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the acoount titles and enter O for the amounts. Ust all debit entries before credit entries)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-13

Authors: John Price, M. David Haddock, Michael Farina

15th Edition

125999516X, 9781259995163

More Books

Students also viewed these Accounting questions

Question

What are the objectives of Human resource planning ?

Answered: 1 week ago

Question

Explain the process of Human Resource Planning.

Answered: 1 week ago