On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $555,800 for real estate plus $29,800 cash in closing costsThe real estate included land appraised at $227,240; land improvements appraised at $59,800, and a building appraised at $310,960.PPE AssetAppraisedValues(b)Ratio of Individual Appraised Value toTotal Appraised Value(a) Total Appraised Value:(c)Cost Allocation(b) x Total ActualCostPresent the journal entry to record the purchase. (Do not round intermediate calculations. Round the final answers to the nearestwhole dollar.)View transaction listView journal entry worksheetNoDateGeneral JournalDebitCredit1April 12, 2023Land222,489Land improvements58,706304,405Building

Step 1:Allocation of lumpsum cost to individual PPE asset: (a)(b)(c)PPE AssetAppraised ValuesRatio…

Answered: On April 12, 2023, Prism Ltd., a camera…

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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Required information (The following information applies to the questions displayed below.) Rodriguez Company pays $335,000 for real estate plus $17,755 in closing costs. The real estate consists of land appraised at $196,000; land improvements appraised at $68,600; and a building appraised at $225,400. Prepare the journal entry to record the purchase. (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Record the costs of lump-sum purchase.
At December 31, 2019, certain accounts included in the property, plant, and equipment section of Blue Spruce Corporation’s statement of financial position had the following balances: Land $309,730 Buildings—Structure 882,700 Leasehold Improvements 704,930 Equipment 844,920 During 2020, the following transactions occurred: 1. Land site No. 621 was acquired for $799,790 plus a fee of $6,780 to the real estate agent for finding the property. Costs of $33,140 were incurred to clear the land. In clearing the land, topsoil and gravel were recovered and sold for $10,950. 2. Land site No. 622, which had a building on it, was acquired for $559,950. The closing statement indicated that the land’s assessed tax value was $308,680 and the building’s value was $101,830. Shortly after acquisition, the building was demolished at a cost of $27,640. A new building was constructed for $339,530 plus the following costs: Excavation fees $37,960 Architectural design…
In its first year of business, Coronado purchased land, a building, and equipment on March 5, 2023, for $636,000 in total. The land was valued at $269,400, the building at $336,750, and the equipment at $67,350. Additional information on the depreciable assets follows: Asset Building Equipment (a) Land Residual Value Building Your answer is correct. $ $25,200 $ 4,000 Equipment $ Useful Life in Years Allocate the purchase cost of the land, building, and equipment to each of the assets. 60 8 254400 318000 Depreciation Method 63600 Straight-line Double diminishing-balance
Sunland Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,944,000 on March 1, $1,224,000 on June 1, and $3,072,650 on December 31. Compute Sunland's weighted-average accumulated expenditures for interest capitalization purposes. Weighted-average accumulated expenditures $
At December 31, 2022, Concord Corporation reported the following plant assets. Land $ 3,640,000 Buildings $ 28,180,000 Less: Accumulated depreciation-buildings 12,681,000 15,499,000 Equipment 48,740,000 Less: Accumulated depreciation-equipment 6,092,500 42,647,500 Total plant assets $61,786,500 During 2023, the following selected cash transactions occurred. Apr. 1 Purchased land for $ 2,170,000. Мay 1 Sold equipment that cost $ 750,000 when purchased on January 1, 2016. The equipment was sold for $ 225,000. June 1 Sold land for $ 1,510,000. The land cost $ 993,000. July 1 Purchased equipment for $ 1,093,000. Dec. 31 Retired equipment that cost $ 698,000 when purchased on December 31, 2013. No salvage value was received.
Pina Colada Corp's statement of financial position at the end of 2019 included the following items: $1,255,000 $1,095,800 31,800 1,211,000 1,200,000 199,000 321,000 188,000 (144,000 ) (11,600 ) 41,600 $2,693,800 Current assets Land Buildings Equipment Accumulated depreciation-buildings Accumulated depreciation-equipment Intangible assets-patents Total The following information is available for the 2020 fiscal year: 1. 2. 3. 4. 5. 6. 7. 8. 9. Current liabilities Bonds payable Common shares Retained earnings (a) Total $2,693,800 Net income was $399,000. Interest paid is classified as operating activities. Equipment (cost of $20,300 and accumulated depreciation of $8,200) was sold for $10,400. Depreciation expense was $4,010 on the building and $9,130 on equipment. Amortization expense on a patent was $3,040. Current assets other than cash increased by $30,000. Current liabilities increased by $20,000. An addition to a building was completed at a cost of $32,600. Pina Colada prepares…
The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(294,000 ) (b) Payment for construction from note proceeds 294,000 (c) Cost of land fill and clearing 10,230 (d) Delinquent real estate taxes on property assumed by purchaser 7,990 (e) Premium on 6-month insurance policy during construction 11,280 (f) Refund of 1-month insurance premium because construction completed early (1,880 ) (g) Architect’s fee on building 26,210 (h) Cost of real estate purchased as a plant site (land $201,800 and building $54,800) 256,600 (i) Commission fee paid to real estate agency 8,660 (j) Installation of fences around property 3,810 (k) Cost of razing and removing building 11,840 (l) Proceeds from salvage of…
he plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Plant Asset Accumulated Depreciation Land $510,000 - Land Improvements 260,000 61,000 Building 2,300,000 366,000 Equipment 1,190,000 421,000 Automobiles 230,000 128,000 Transactions during 2021 were as follows: On January 2, 2021, equipment were purchased at a total invoice cost of $340,000, which included a $7,100 charge for freight. Installation costs of $43,000 were incurred. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $35,000. The fair value of the building on the day of the donation was $22,500. On May 1, 2021, expenditures of $66,000 were made to repave parking lots at Pell’s plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn’t provide future benefits beyond those originally…
Ayayai Corporation purchased a new plant asset on April 1, 2023, at a cost of $960,000. It was estimated to have a useful life of 20 years and a residual value of $360,000, a physical life of 30 years, and a salvage value of $0. Ayayai's accounting period is the calendar year. Ayayai prepares financial statements in accordance with IFRS. (a) Calculate the depreciation for this asset for 2023 and 2024 using the straight-line method. (Round answers to O decimal places, e.g. 5,275.) Depreciation 2023 $ 2024 $ Save for Later Attempts: 0 of 1 used Submit Answer
The following assets are included in the December 31, 2022, balance sheet ofFortible Auto Parts, Inc.Accounts Receivable(net of Allowance for Uncollectible Accounts) $ 75,000Accumulated Depreciation, Building 20,000Building 170,000Cash 90,000Land 145,000Merchandise Inventory 92,000Trademark 125,500The total dollar amount of assets classified as property, plant, and equipment onFortible Auto Part's December 31, 2022, classified balance sheet is ____

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