Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me correct part c only. To expand its business, Small Company paid $760,000 for most of the property, plant, and equipment of a

image text in transcribed

image text in transcribed

image text in transcribed

please help me correct part c only.

To expand its business, Small Company paid $760,000 for most of the property, plant, and equipment of a small trucking company that was going out of business. Before agreeing to the price, Small hired a consultant for $5,000 to appraise the assets. The appraised values were as follows: Small issued two checks totaling $765,000 to acquire the assets and pay the consultant on July 1. Small depreciated the assets using the straight-line method on the building and on the equipment, and the double-declining balance method on the trucks. Estimated useful lives and salvage values were as follows: a. Calculate the amounts allocated to the various types of plant assets acquired on july 1. b. Prepare the july 1 journal entries to record the purchase of the assets and the payment to the consultant. Combine both cash disbursements into one journal entry. c. Prepare the December 31 journal entrles to record depreciation expense for the year on the building, trucks, and equipment. (Round to the nearest dollar.)

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

Healthcare Fraud Auditing And Detection Guide

Authors: Rebecca S. Busch

1st Edition

0470127104, 978-0470127100

More Books

Students also viewed these Accounting questions