Below are transactions related to Pronghorn Company. (a)   The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this land is determined to be $74,980. (b)   13,000 shares of common stock with a par value of $52 per share are issued in exchange for land and buildings. The property has been appraised at a fair value of $749,800, of which $179,660 has been allocated to land and $570,140 to buildings. The stock of Pronghorn Company is not listed on any exchange, but a block of 100 shares was sold by a stockholder 12 months ago at $67 per share, and a block of 200 shares was sold by another stockholder 18 months ago at $60 per share. (c)   No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead the amounts properly chargeable to plant asset accounts for machinery constructed during the year. The following information is given relative to costs of the machinery constructed. Materials used   $11,400 Factory supplies used   844 Direct labor incurred   15,460 Additional overhead (over regular) caused by construction ofmachinery, excluding factory supplies used   2,544 Fixed overhead rate applied to regular manufacturing operations   60% of direct labor cost Cost of similar machinery if it had been purchased fromoutside suppliers   41,330 Prepare journal entries on the books of Pronghorn Company to record these transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a)               (b)                               (c)                                   Click if you would like to Show Work for this question: Open Show Work     SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
Below are transactions related to Pronghorn Company.

(a)   The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this land is determined to be $74,980.
(b)   13,000 shares of common stock with a par value of $52 per share are issued in exchange for land and buildings. The property has been appraised at a fair value of $749,800, of which $179,660 has been allocated to land and $570,140 to buildings. The stock of Pronghorn Company is not listed on any exchange, but a block of 100 shares was sold by a stockholder 12 months ago at $67 per share, and a block of 200 shares was sold by another stockholder 18 months ago at $60 per share.
(c)   No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead the amounts properly chargeable to plant asset accounts for machinery constructed during the year. The following information is given relative to costs of the machinery constructed.

Materials used   $11,400
Factory supplies used   844
Direct labor incurred   15,460
Additional overhead (over regular) caused by construction of
machinery, excluding factory supplies used
  2,544
Fixed overhead rate applied to regular manufacturing operations   60% of direct labor cost
Cost of similar machinery if it had been purchased from
outside suppliers
  41,330

Prepare journal entries on the books of Pronghorn Company to record these transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.
Account Titles and Explanation
Debit
Credit
(a)
 
 
 
 
 
 
 
(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Click if you would like to Show Work for this question:
Open Show Work

 

 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
 
 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Accounting for Property, Plant and Equipment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education