Prepare the correcting entry that is required in each case to correct the accounts. In other words, do not simply reverse the incorrect entry and replace it with the entry in the part above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Do not round intermediate calculations. Round final answers to decimal places, eg. 5,275.) No. Account Titles and Explanation Debit Credit 1. Land Buildings Equipment Cash 2. Equipment Cash 3. > 4. 5. e Textbook and Media Prepare the entry that should have been made at the date of each acquisition. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Do not round intermediate calculations. Round final answers to O decimal places, eg. 5,275.) No. Account Titles and Explanation Debit Credit 1. 127304 Land Buildings 301463 Equipment 303232 Cash 731999 2. Equipment 26600 Cash 24600 Notes Payable 2000 3. Equipment 26264 Accounts Payable 26264 Land 34700 Donation Revenue 34700 5. Buildings 643000 Cash 643000 e Textbook and Media View Policies Current Attempt in Progress Plant acquisitions for selected companies are as follows: 1 Crane Industries Inc. acquired land, buildings and equipment from a bankrupt company. Torres Co, for alump-sum price of $732,000. At the time of purchase, Torres's assets had the following book and appraisal values: Land Buildings Equipment Book Value Appraisal Value $202,000 $144,000 245,000 341,000 343,000 343,000 Crane Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land Buildings Equipment Cash 144,000 245,000 343,000 732,000 Crane Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that on initial construction of the building the roof amounted to 22% of the cost of the building. Because of the unique design and materials needed to replace the roof, the contractors stated that the roof structure is currently worth 15% of the value of the building purchase. Hari Enterprises purchased equipment by making a $2,000 cash down payment and signing a $24.600, one-year, 12% note payable. The purchase was recorded as follows: 2. Equipment 29,552 Cash 2,000 Notes Payable 24,600 Interest Payable 2,952 Kim Company purchased equipment for $26,800, 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: 3. Equipment 26,800 26,264 Purchase 536 Discounts Kaiser Inc recently received land at zero cost from the Village of Chester as an inducement to locate its business in the village. The land's appraised value was $34,700. The company made no entry to record the land because it had no cost basis Zimmerman Company built a warehouse for $643,000. It could have contracted out and purchased the building for $733.000. The controller made the following entry: 5. 733,000 Buildings Cash Sales Revenue 643,000 90,000
