Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rodriguez Company pays $379,080 for real estate with land, land improvements, and a building. Land is appraised at $255,000; land improvements are appraised at
Rodriguez Company pays $379,080 for real estate with land, land improvements, and a building. Land is appraised at $255,000; land improvements are appraised at $102,000; and the building is appraised at $153,000. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. (Round your "Apportioned Cost" answers to 2 decimal places.) Appraised Value Percent of Total Appraised Value Total Cost of Acquisition = Apportioned Cost Land Land $ 255,000 67% 379,080 $ 253,984.00 improvements Building 102,000 153,000 27% 379,080 6% * 379,080 102,352.00 x 22,744.000 Totals $ 510,000 100% $ 379,080.00 < Required 1 Required 2 > Rodriguez Company pays $379,080 for real estate with land, land improvements, and a building. Land is appraised at $255,000; land improvements are appraised at $102,000; and the building is appraised at $153,000. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record the purchase. (Round your answers to 2 decimal places.) No Transaction A 1 Land Land improvements Building Cash General Journal < Required 1 Required 2 > Debit 253,984.00 X Credit 102,352.00 22,744.00 379,080.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started