Question
Presented below is information related toWhisperingCompany. 1. On July 6,WhisperingCompany acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of
Presented below is information related toWhisperingCompany.
1.On July 6,WhisperingCompany acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is:
Land$500,000
Buildings1,500,000
Equipment1,000,000Total$3,000,000
WhisperingCompany gave12,400shares of its $100par value common stock in exchange. The stock had a market price of $168per share on the date of the purchase of the property.
2.WhisperingCompany 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$304,500Construction of bases for equipment to be installed later391,500Driveways and parking lots353,800Remodeling of office space in building, including new partitions and walls466,900Special assessment by city on land52,200
3.On December 20, the company paid cash for equipment, $754,000, subject to a2% cash discount, and freight on equipment of $30,450.
Prepare entries on the books ofWhisperingCompany for these transactions.(Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. 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 0 for the amounts.)
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