Required information E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight-Line Depreciation) LO8- 2,8-3 [The following information applies to the questions displayed below.] Shahia Company bought a building for $90,000 cash and the land on which it was located for $111,000 cash. The company paid transfer costs of $16,000 ($5,000 for the building and $11,000 for the land). Renovation costs on the building before it could be used were $17,000. E8-3 Part 1 Required: 1. Prepare the journal entry to record the purchase of the property, including all relevant expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction A 1 Building Land Cash General Journal Debit Credit 112,000 122,000 234,000 ! Required information E8-3 (Algo) Computing and Recording Cost and Depreciation of Assets (Straight-Line Depreciation) LO8- 2,8-3 [The following information applies to the questions displayed below.] Shahia Company bought a building for $90,000 cash and the land on which it was located for $111,000 cash. The company paid transfer costs of $16,000 ($5,000 for the building and $11,000 for the land). Renovation costs on the building before it could be used were $17,000. E8-3 Part 3 3. What would be the net book value of the property (land and building) at the end of year 2? (Amounts to be deducted should be indicated by a minus sign.) Net book value of property at end of Year 2 Net book value 0 Chec E8-1 (Algo) Preparing a Classified Balance Sheet LO8-1 The following is a list of account titles and amounts (dollars in millions) from a recent annual report of Calvin, Inc., a leading manufacturer of games, toys, and interactive entertainment software for children and families: Buildings and improvements Prepaid expenses and other current assets $ 202 171 Allowance for doubtful accounts 45 Other noncurrent assets 205 Accumulated amortization (other intangibles) 812 Cash and cash equivalents 623 Goodwill 483 Machinery, equipment, and software 418 Accumulated depreciation 405 Inventories Tools, dies, and molds Other intangibles Land and improvements Accounts receivable 295 73 1,377 17 636 Required: Prepare the asset section of the balance sheet for Calvin, Inc., classifying the assets into Current Assets, Property, Plant, and Equipment (net), and Other Assets. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated by a minus sign.) Calvin, Inc. Excerpts from Balance Sheet (in millions) Assets Current assets: Cash and cash equivalents Inventories Tools dies, and molds 623 295 73 < Prev 4 of 10 Next > Excerpts from Balance Sheet (in millions) Assets Current assets: Cash and cash equivalents Inventories Tools, dies, and molds Accounts receivable (net of allowance for doubtful accounts) Accounts receivable (net of allowance for doubtful accounts) Prepaid expenses and other current assets Total current assets Property, plant, and equipment: Land and improvements Buildings and improvements Machinery, equipment, and software $ 623 295 73 636 (45) 171 1,753 17 202 418 Property, plant, and equipment (at cost) 637 Accumulated depreciation (405) Property, plant, and equipment (net) 232 Other Assets: Goodwill 483 Other intangibles (net of accumulated amortization) 1,377 Other intangibles (net of accumulated amortization) (812) Other noncurrent assets 205 Total other assets Total Assets 1,253 $ 3,238