On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $575,000 for real estate plus $31,400 cash in closing costs. The real estate included land appraised at $221,040; land improvements appraised at $55,260; and a building appraised at $337,700. (a) (b) Ratio of Individual Appraised Value to Total Appraised Value (a) + Total Appraised Value PPE Asset Appraised Values (c) Cost Allocation (b) x Total Actual Cost Present the journal entry to record the purchase. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $575,000 for real estate plus $31,400 cash in closing costs. The real estate included land appraised at $221,040; land improvements appraised at $55,260; and a building appraised at $337,700. (a) (b) Ratio of Individual Appraised Value to Total Appraised Value (a) + Total Appraised Value PPE Asset Appraised Values (c) Cost Allocation (b) x Total Actual Cost Present the journal entry to record the purchase. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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H1.
Transcribed Image Text:On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $575,000 for real estate plus $31,400 cash in
closing costs. The real estate included land appraised at $221,040; land improvements appraised at $55,260; and a
building appraised at $337,700.
(a)
(b)
Ratio of Individual Appraised Value to
Total Appraised Value
(a) = Total Appraised Value
PPE Asset
Appraised
Values
(c)
Cost Allocation
(b) x Total Actual Cost
Present the journal entry to record the purchase. (Do not round intermediate calculations. Round the final answers to the
nearest whole dollar.)
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