Transactions involving property

The following transactions were completed by millenial toy co. During 2016

Transactions Involving Property The following transactions were completed by Millenial Toy Co. during 2015 Mar. 1 Purchased real property for $829,700, which included a charge of $29,700 re e pur property tax for March 1-June 30 that had been prepaid by the vendor, 25% of th chase price is deemed applicable to land and the balance to buildings. A morta $460,000 was assumed by Millenial Toy Co. on the purchase. Cas Previous owners had failed to take care of normal maintenance and repair requirements on the building, necessitating current reconditioning at a cost of $34.200 h was paid for the balance 30 May 15 Demolished garages in the rear of the building, $6,600 being recovered on the lumber sa- vage. The company proceeded to construct a warehouse. The cost of such construction was $101,300, which was almost exactly the same as bids made on the construction by indepen- dent contractors. Upon completion of construction, city inspectors ordered extensive modi- fications to the building as a result of failure on the part of the company to comply with the building safety code. Such modifications, which could have been avoided, cost $12,400. The company exchanged its own stock with a market value of $64,000 (par $4,000) for a pat ent and a new toy-making machine. The machine has a market value of $31,000 The new machinery for the new building arrived. In addition to the machinery, a new franchise was acquired from the manufacturer of the machinery to produce toy robots. Payment was made by issuing bonds with a face value of $100,000 and by paying cash of $15,000. The value of the franchise is set at $50,000, while the machine's fair value is $61,00 June 1 July 1 Nov. 20 The company contracted for parking lots and landscaping at a cost of $42,000 and $8900 Dec. 31 The business was closed to permit taking the year-end inventory. During this time, req Instructions: Give the journal entries to record each of the preceding transactions respectively. The work was completed and paid for on November 20 red redecorating and repairs were completed at a cost of $6,400 (Disregard depreciation.)