3. Donated assets.Cheng Company has recently decided to accept a proposal from the City of Bel Aire that publicly owned propertywith a large warehouse located on it will be donated to Cheng if Cheng will build a branch plant in Bel Aire. Theappraised value of the property is $500,000 and of the warehouse is $1,000,000.InstructionsPrepare the entry by Cheng for the receipt of the properties.DebitCredit4. Capitalization of interest.During 2017, Barden Building Company constructed various assets at a total cost of $14,700,000. The weightedaverage accumulated expenditures on assets qualifying for capitalization of interest during 2017 were$9,800,000. The company had the following debt outstanding at December 31, 2017:1. 10%, 5-year note to finance construction of various assets,dated January 1, 2017, with interest payable annually on January 1$6,300,0002. 12%, ten-year bonds issued at par on December 31, 2011, with interestpayable annually on December 317,000,0003. 9%, 3-year note payable, dated January 1, 2016, with interest payableannually on January 13,500,000InstructionsCompute the amounts of each of the following (show computations).1. Avoidable interest.2. Total interest to be capitalized during 2017. 1. Acquisition of equipment (truck)$ 16,000that the company carries ininventory. The computer system costs$ 15,200Truck# 3 has a list price of2$and is acquired in exchange for a computer system$ 12,000 andis normallysold by the company forThe company uses a perpetual inventory system.Acquisition costs of trucksDebitCreditCompany operates a retail computer store. Toimprove de livery services to customers, the companypurchases four new trucks onApril 12020The terms of eachof the four trucks are described as follows:# 4 has a list price ofstock of the company. The stock has a par value per share of $10 and a market price of $ 13 per shareTruck$ 14,000and is acquired in exchange for a1,000 shares of commonTruck# 1 has a list price of$ 15,000and is acquired with a cash payment of$13,900DebitCreditDebitCreditTruck# 2 has a list price of$ 16,000and is acquired for a down payme nt of$2,0002. Nonmonetary exchange.A machine cost $300,000, has annual depreciation expense of $60,000, and has accumulated depreciation of$150,000 on December 31, 2017. On April 1, 2018, when the machine has a fair value of $120,000, it isexchanged for a similar machine with a fair value of $360,000 and the proper amount of cash is paid. Theexchange lacked commercial substance.and a zero-intere st-bearing note with a face amount of14,000The note is dueApril2021The company normally has to pay an interest rate ofand the de alership has an incremental borrowing rate ofInstructionsPrepare all entries that are necessary at April 1, 2018.10%for such a borrowing,8%DebitCreditDebitCredit

Journal entry:The monetary transaction of the business is recorded in the books of accounts called…

3. Donated assets. Cheng Company has recently decided to accept a proposal from the City of Bel Aire that publicly owned property with a large warehouse located on it will be donated to Cheng if Cheng will build a branch plant in Bel Aire. The appraised value of the property is $500,000 and of the warehouse is $1,000,000. Instructions Prepare the entry by Cheng for the receipt of the properties. Debit Credit

3. Donated assets. Cheng Company has recently decided to accept a proposal from the City of Bel Aire that publicly owned property with a large warehouse located on it will be donated to Cheng if Cheng will build a branch plant in Bel Aire. The appraised value of the property is $500,000 and of the warehouse is $1,000,000. Instructions Prepare the entry by Cheng for the receipt of the properties. Debit Credit

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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On July 16, 20Y1, Wyatt Corp. purchased 40 acres of land for $350,000. The land has been held for a future plant site until the current date, December 31, 20Y9. On December 18, 20Y9, TexoPete Inc. purchased 40 acres of land for $2,000,000 to be used for a distribution center. The TexoPete land is located next to the Wyatt Corp. land. Thus, both Wyatt Corp. and TexoPete Inc. own nearly identical pieces of land.1. What are the valuations of land on the balance sheets of Wyatt Corp. and TexoPete Inc. using generally accepted accounting principles?2. How might fair value accounting aid comparability when evaluating these two companies?
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Millbourne corporation has acquired a property that includes both land and a building for $550,000. The corporation hired an appraiser who has determined that the market value of the land is $350,000 and that of the building is $480,000, at what amount should the corporation record the cost of land? A) $147,000 B) $363,000 C) $231,000 D) $275,000
-determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building -would the company recognize a gain on the purchase? -record the purchase in a horizontal statements model -record the purchase in general journal format
Santa Maria College, Inc. a proprietary educational institution, spent P 20,000,000 for the construction of a new school building. The estimated useful life of the building is 50 years. The i 20,000,000 spent by the proprietary educational institution, choose the best answer: O d. Capitalized and expensed outright at the option of the Bureau of Internal Revenue. O. Capitalized or expensed outright at the option of Santa Maria College, Inc. O a. Must be claimed as expense in the year of completion. O b. Capitalize and claim annual depreciation over the 50 years.
Record the following events of Mental Health Clinic, a VHWO:1. A contribution of $20,000 was received and is to be used for the purchase of equipment, but not until an addition to the building is constructed. Construction has begun on the building.2. Equipment costing $17,000, with a book value of $8,000, was sold for $10,000. The gain is unrestricted.3. Depreciation of $9,000 is recorded on various plant items.4. Equipment was purchased for $18,000, with payment due in 30 days from donor-restricted resources. Mental Health Clinic elects to release the donor restriction upon acquisition of the equipment.5. The liability for the equipment purchased in item (4) was paid.
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,995,000. Harding paid $560,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $592,000; Building, $1,760,000 and Equipment, $1,168,000. What value will be reported for the land on the balance sheet? Note: Round intermediate percentage values to a whole percentage. Multiple Choice O O 00 $598,400 $339,150 $1,760,000 $1,161,600
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please given answer only (4).
Rodriguez Company pays $352, 755 for real estate with land, land improvements, and a building. Land is appraised at $207,000; land improvements are appraised at $69,000; and the building is appraised at $184,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Allocate the total cost among the three assets. Note: Round your "Apportioned Cost" answers to 2 decimal places. \table[[ \table[[Appraised], [Value]],\table[[Percent of Total], [Appraised], [Value]],\table[[x Total Cost of], [Acquisition]],\table[[Apportioned], [Cost]]]. [Land,...]. [Land improvements...]. [Building....]]
What is the depreciation expense on the factory building to be reported for 20x1? What is the grant income to be reported for 20x1? * What is the loss to be recognized resulting from the repayment of the grant in 20x3?