LO 2Cash +LandAssets+Exercise 8-6A Allocating costs for a basket purchaseJourdan Company purchased a restaurant building, land, and equipment for $700,000 cash. Theappraised value of the assets was as follows:LandBuildingEquipmentTotalBuilding + Equip.Requireda. Compute the amount to be recorded on the books for each of the assets.b. Record the purchase in a horizontal statements model like the following one.$160,000400,000240,000$800,000= Liab. + Equity Rev.Exp.c. Prepare the general journal entry to record the purchase.= Net Inc.Cash Flow

The process of evaluating the value of an asset is referred to as the appraisal methodology, and it…

Cash LO 2 + Assets Exercise 8-6A Allocating costs for a basket purchase Jourdan Company purchased a restaurant building, land, and equipment for $700,000 cash. The appraised value of the assets was as follows: Land + Building + Equip. Land Building Equipment Total Required a. Compute the amount to be recorded on the books for each of the assets. b. Record the purchase in a horizontal statements model like the following one. = Liab. $160,000 400,000 240,000 $800,000 + Equity Rev. Exp. = Net Inc. Cash Flow

Cash LO 2 + Assets Exercise 8-6A Allocating costs for a basket purchase Jourdan Company purchased a restaurant building, land, and equipment for $700,000 cash. The appraised value of the assets was as follows: Land + Building + Equip. Land Building Equipment Total Required a. Compute the amount to be recorded on the books for each of the assets. b. Record the purchase in a horizontal statements model like the following one. = Liab. $160,000 400,000 240,000 $800,000 + Equity Rev. Exp. = Net Inc. Cash Flow

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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Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $120,090. The seller agreed to allow a 4.75 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,500. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,100. The loader operator is paid an annual salary of $27,380. The cost of the company's theft insurance policy increased by $1,560 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $5,100. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader. Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costs
%24 Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $30,000 in cash and giving a short-term note for $276,000. Legal fees paid were $2,435, delinquent taxes assumed were $12,400, and fees paid to remove an old building from the land were $18,200. Materials salvaged from the demolition of the building were sold for $4,600. A contractor was paid $930,200 to construct a new warehouse Determine the cost of the land to be reported on the balance sheet. ( Previous Next Check My Work Save and Exit Submit Assignment for Grae
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