#13 Various PPE acquisition methods: via stock issuance, deferred payment purchase; subsequent expenditures 1. Zonker Company acquired property, plant, and equipment from Doonesbury Company. The assets had these appraised values: Land $ 400,000 1,200,000 Buildings Equipment 800,000 Total $ 2,400,000 Zonker gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the acquisition. 2. Zonker Company incurred these expenditures with respect one of its buildings: Major repairs to building Construction of bases for equipment to be operated in the building Driveways and parking lots Remodeling of office space in building, new partitions and walls Special land assessment by the city on which the building sits $105,000 135,000 122,000 161,000 18,000 3. On December 20, Zonker Company purchased equipment and presented the vendor with a $260,000, zero-interest note due in 2 years. Its prevailing rate for this type of transaction is 8%. Prepare entries on the books of Zonker Company for these transactions.

#13 Various PPE acquisition methods: via stock issuance, deferred payment purchase; subsequent expenditures 1. Zonker Company acquired property, plant, and equipment from Doonesbury Company. The assets had these appraised values: Land $ 400,000 1,200,000 Buildings Equipment 800,000 Total $ 2,400,000 Zonker gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the acquisition. 2. Zonker Company incurred these expenditures with respect one of its buildings: Major repairs to building Construction of bases for equipment to be operated in the building Driveways and parking lots Remodeling of office space in building, new partitions and walls Special land assessment by the city on which the building sits $105,000 135,000 122,000 161,000 18,000 3. On December 20, Zonker Company purchased equipment and presented the vendor with a $260,000, zero-interest note due in 2 years. Its prevailing rate for this type of transaction is 8%. Prepare entries on the books of Zonker Company for these transactions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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