2. Humbolt Hardware Company recently negotiated a lump-sum purchase of several assets from another business. They completed the purchase on August 31, 2021, at a total cash price of $641,129 which included land, parking lot, truck, and building. The estimated fair market values of the assets were land $341,378, parking lot $16,182, truck $22,232, and building $274,421. The Company has a December 31 year-end. Prepare a schedule to allocate the lump-sum purchase to separate assets. Also, prepare the general journal entry to record the transaction.

2. Humbolt Hardware Company recently negotiated a lump-sum purchase of several assets from another business. They completed the purchase on August 31, 2021, at a total cash price of $641,129 which included land, parking lot, truck, and building. The estimated fair market values of the assets were land $341,378, parking lot $16,182, truck $22,232, and building $274,421. The Company has a December 31 year-end. Prepare a schedule to allocate the lump-sum purchase to separate assets. Also, prepare the general journal entry to record the transaction.

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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