The amount to be recorded on the books Jackson Enterprises purchased a warehouse building, land, and machinery for$2,400,000. Jackson paid $400,000 in cash and issued a 25-year, 7 percent noteto First National Bank for the balance. The appraised values of the assets areas follows:Land $600,000Building = $1,200,000Machinery $600,000=. Total $2,400,000Based on this information, the amount to be recorded on the books for theBuilding would be:a) $1,200,000b) $1,000,000c) $800,000d) None of the above

Explanation of Lump-Sum Purchase:A lump-sum purchase occurs when a company acquires multiple assets…

Answered: Jackson Enterprises purchased a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2EA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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Lexington Garden Supply paid $160,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $85,000, the building $51,000, and the equipment $34,000. Journalize the lump-sum purchase of the three assets for a total cost of $160,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit
Rural Tech Support paid $190,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $100,000, the building $80,000, and the equipment $20,000. Journalize the lump-sum purchase of the three assets for a total cost of $190,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $514,100; land, $329,800; land improvements, $48,500; and four vehicles, $77,600. Prepare the journal entry to record the purchase.
Please solve this following requirements on these general accounting question
Advanced Automotive paid $200,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $105,000, the building $63,000, and the equipment $42,000. Journalize the lump-sum purchase of the three assets for a total cost of $200,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Timberly Construction makes a lump - sum purchase of several assets on January 1 at a total cash price of $810,000. The estimated market values of the purchased assets are building, $ 487,600; land, $285,200; land improvements, $73,600; and four vehicles, $73,600. Allocate the lump - sum purchase price to the separate assets purchased. Prepare the journal entry to record the purchase. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31, 000 salvage value. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double - declining - balance depreciation.
Crane Industries Corp. purchased the following assets and also constructed a building. All this was done during the current year using a variety of financing alternatives. Assets 1 and 2 These assets were purchased together for $124,000 cash. The following information was gathered: Depreciation Initial Cost on to Date on Book Value on Appraised Description Seller's Books Seller's Books Seller's Books Value Machinery $115,000 $52,000 $63,000 $90,000 Equipment 69,000 10,000 59,000 30,000 Asset 3 This machine was acquired by making a $11,000 down payment and issuing a $32,800, two-year, zero-interest-bearing note. The note is to be paid off in two $16,400 instalments made at the end of the first and second years. It was determined that the asset could have been purchased outright for $37,700.
Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $315,000. The estimated fair values of the assets are land, $60,000; building, $220,000; and equipment, $80,000. Journalize the purchase using the relative sales value method. Date Account Debit Credit MM/DD/YY 6 of 9
Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000 was sold for $15,000 cash. Accumulated depreciation of $30,000 existed at the time of the sale. What would be journal entry that should be made in the special revenue fund (in debit and credit form)?
Questor Applications paid $180,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $95,000, the building $76,000, and the equipment $19,000. Journalize the lump-sum purchase of the three assets for a total cost of $180,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit
[The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $840,000. The estimated market values of the purchased assets are building, $432,400; land, $282,000; land improvements, $37,600; and four vehicles, $188,000. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Land…

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