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Coronado Inc. initiated a major company expansion on January 4, 2025. During the first quarter of 2025, Coronado acquired assets that were placed into production on July 1, 2025. The following costs were incurred: Land Purchase for factory Parking Lot Paving City Assessment for sidewalks Production Line equipment Sales tax on equipment Closing costs on land Architect building $470,000 75,000 73,000 105,000 5,250 7.700 21000

Coronado Inc. initiated a major company expansion on January 4, 2025. During the first quarter of 2025, Coronado acquired assets that were placed into production on July 1, 2025. The following costs were incurred: Land Purchase for factory Parking Lot Paving City Assessment for sidewalks Production Line equipment Sales tax on equipment Closing costs on land Architect building $470,000 75,000 73,000 105,000 5,250 7.700 21000

FINANCIAL ACCOUNTING
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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Coronado Inc. initiated a major company expansion on January 4, 2025. During the first quarter of 2025, Coronado acquired several assets that were placed into production on July 1, 2025. The following costs were incurred: Land Purchase for factory Parking Lot Paving City Assessment for sidewalks Production Line equipment Sales tax on equipment Closing costs on land Architect fees for new building Price paid to General Contractor for building Removal of existing building $470,000 75,000 73,000 105,000 5,250 7,700 21,000 732,000 18,000 Purchase of Warehouse: exchanged 800 shares of Coronado stock with a par value of $5 per share. Coronado stock is currently trading at $145 per share. Installation of production line equipment $25,000
Transcribed Image Text:Coronado Inc. initiated a major company expansion on January 4, 2025. During the first quarter of 2025, Coronado acquired several assets that were placed into production on July 1, 2025. The following costs were incurred: Land Purchase for factory Parking Lot Paving City Assessment for sidewalks Production Line equipment Sales tax on equipment Closing costs on land Architect fees for new building Price paid to General Contractor for building Removal of existing building $470,000 75,000 73,000 105,000 5,250 7,700 21,000 732,000 18,000 Purchase of Warehouse: exchanged 800 shares of Coronado stock with a par value of $5 per share. Coronado stock is currently trading at $145 per share. Installation of production line equipment $25,000
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 Debit Credit
Transcribed Image Text: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 Debit Credit
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