Question
Presented below is information related to Blossom Company. 1. On July 6, Blossom Company acquired the plant assets of Doonesbury Company, which had discontinued operations.
Presented below is information related to Blossom Company.
1. On July 6, Blossom Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is:
Land $372,000
Buildings 1,116,000
Equipment 744,000
Total $2,232,000
Blossom Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $171 per share on the date of the purchase of the property.
2. Blossom Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.)
Repairs to building $107,860
Construction of bases for equipment to be installed later 135,500
Driveways and parking lots 131,060
Remodeling of office space in building, including new partitions and walls 162,550
Special assessment by city on land 19,750
3. On December 20, the company paid cash for equipment, $274,800, subject to a 2% cash discount, and freight on equipment of $11,540.
Prepare entries on the books of Blossom Company for these transactions
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