Concord Inc. initiated a major company expansion on January 4, 2025. During the first quarter of 2025, Concord acquired several assets that were placed into production on July 1, 2025. The following costs were incurred: Land Purchase for factory $512,000 Parking Lot Paving 72,000 City Assessment for sidewalks 82,000 Production Line equipment 107,000 Sales tax on equipment 5,350 Closing costs on land 7,600 Architect fees for new building 19,000 Price paid to General Contractor for building 808,000 Removal of existing building 21,000 Purchase of Warehouse; exchanged 1,000 shares of Concord stock with a par value of $5 per share. Concord stock is currently trading at $100 per share. Installation of production line equipment $26,000 Based on this information, prepare the necessary journal entries to record the asset acquisitions assuming that all assets were purchased for cash except for the warehouse. (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 O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Land PAR Land Improvements Cash Buildings Cash Debit 601600 154000 848000 Credit 154000 848000
Concord Inc. initiated a major company expansion on January 4, 2025. During the first quarter of 2025, Concord acquired several assets that were placed into production on July 1, 2025. The following costs were incurred: Land Purchase for factory $512,000 Parking Lot Paving 72,000 City Assessment for sidewalks 82,000 Production Line equipment 107,000 Sales tax on equipment 5,350 Closing costs on land 7,600 Architect fees for new building 19,000 Price paid to General Contractor for building 808,000 Removal of existing building 21,000 Purchase of Warehouse; exchanged 1,000 shares of Concord stock with a par value of $5 per share. Concord stock is currently trading at $100 per share. Installation of production line equipment $26,000 Based on this information, prepare the necessary journal entries to record the asset acquisitions assuming that all assets were purchased for cash except for the warehouse. (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 O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Land PAR Land Improvements Cash Buildings Cash Debit 601600 154000 848000 Credit 154000 848000
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
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Transcribed Image Text:Concord Inc. initiated a major company expansion on January 4, 2025. During the first quarter of 2025, Concord acquired several
assets that were placed into production on July 1, 2025. The following costs were incurred:
Land Purchase for factory
$512,000
Parking Lot Paving
72,000
City Assessment for sidewalks
82,000
Production Line equipment
107,000
Sales tax on equipment
5,350
Closing costs on land
7,600
Architect fees for new building
19,000
Price paid to General Contractor for building
808,000
Removal of existing building
21,000
Purchase of Warehouse; exchanged 1,000 shares of Concord stock with a par value of $5 per share. Concord stock is currently trading
at $100 per share.
Installation of production line equipment
$26,000
Based on this information, prepare the necessary journal entries to record the asset acquisitions assuming that all assets were
purchased for cash except for the warehouse. (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 O for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Land
PAR
Land Improvements
Cash
Buildings
Cash
Debit
601600
154000
848000
Credit
154000
848000
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