On March 1, Dover Manufacturing Ltd. purchased a factory with a lot of land and a machine for $9,717,500. Dover paid legal fees of $2,500 for this purchase, renovation costs on the building of $38,000, and the $4,000 cost of overhauling the machine. The appraisal value for the land was $3,430,000, for the building was $5,880,000, and for the machine was $490,000. Dover estimated that the building's useful life was 139 years with a residual value of $32,000, and the machine's production hours would be 81,167 hours with a residual value of $3,000. Dover uses the straight-line method to depreciate the building and units of production method to depreciate the machine. Dover's year-end is December 31. Dover used the machine 4,800 hours for the first year and 5,300 hours for the second year. Read the requirements. Requirement 1. Apportion the cost of the factory on the basis of the appraised value. (Round your answers to the nearest whole dollar. If an input field is not used in the table, leave the input field empty; do not enter a zero.) Additional Costs Total Cost Apportioned Value 3,402,000 5,832,000 $ 486,000 $ 9,720,000 Appraisal Value Percentage 3,430,000 5,880,000 490,000 9.800.000 Land $ Building $ $ Machine Total Date March 1 $ 35% $ 60% $ 5% $ $ $ 38,000 $ 4,000 $ 42,000 $ Debit 3,402,000 5,870,000 490.000 9,762,000 Requirement 2. Record the journal entry for the purchase of the factory, land, and machine. (Record debits first, then credits. Exclude explanations from journal entries. Round your answers to the nearest whole dollar.) Account Titles Credit What is the correct answer if 9,720,000 is incorrect How do I enter these jornal entry
On March 1, Dover Manufacturing Ltd. purchased a factory with a lot of land and a machine for $9,717,500. Dover paid legal fees of $2,500 for this purchase, renovation costs on the building of $38,000, and the $4,000 cost of overhauling the machine. The appraisal value for the land was $3,430,000, for the building was $5,880,000, and for the machine was $490,000. Dover estimated that the building's useful life was 139 years with a residual value of $32,000, and the machine's production hours would be 81,167 hours with a residual value of $3,000. Dover uses the straight-line method to depreciate the building and units of production method to depreciate the machine. Dover's year-end is December 31. Dover used the machine 4,800 hours for the first year and 5,300 hours for the second year. Read the requirements. Requirement 1. Apportion the cost of the factory on the basis of the appraised value. (Round your answers to the nearest whole dollar. If an input field is not used in the table, leave the input field empty; do not enter a zero.) Additional Costs Total Cost Apportioned Value 3,402,000 5,832,000 $ 486,000 $ 9,720,000 Appraisal Value Percentage 3,430,000 5,880,000 490,000 9.800.000 Land $ Building $ $ Machine Total Date March 1 $ 35% $ 60% $ 5% $ $ $ 38,000 $ 4,000 $ 42,000 $ Debit 3,402,000 5,870,000 490.000 9,762,000 Requirement 2. Record the journal entry for the purchase of the factory, land, and machine. (Record debits first, then credits. Exclude explanations from journal entries. Round your answers to the nearest whole dollar.) Account Titles Credit What is the correct answer if 9,720,000 is incorrect How do I enter these jornal entry
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Dd.35.
Transcribed Image Text:On March 1, Dover Manufacturing Ltd. purchased a factory with a lot of land and a machine for $9,717,500. Dover paid legal fees of $2,500 for this purchase, renovation costs on the building of $38,000, and the $4,000 cost of overhauling the machine. The appraisal value for the
land was $3,430,000, for the building was $5,880,000, and for the machine was $490,000.
Dover estimated that the building's useful life was 139 years with a residual value of $32,000, and the machine's production hours would be 81,167 hours with a residual value of $3,000. Dover uses the straight-line method to depreciate the building and units of production
method to depreciate the machine. Dover's year-end is December 31. Dover used the machine 4,800 hours for the first year and 5,300 hours for the second year.
Read the requirements.
Requirement 1. Apportion the cost of the factory on the basis of the appraised value. (Round your answers to the nearest whole dollar. If an input field is not used in the table, leave the input field empty; do not enter a zero.)
Additional Costs
Total Cost
Appraisal Value
3,430,000
5,880,000
490,000
9,800,000
Apportioned Value
3,402,000
5,832,000 $
486,000 $
9,720,000
Land
Building
Machine
Total
$
$
$
$
Percentage
35 %
60 %
5%
$
$
$
$
$
38,000 $
4,000 $
42,000 $
Debit
(…)
3,402,000
5,870,000
190.000
9,762,000
What is the correct answer if 9,720,000 is incorrect
Requirement 2. Record the journal entry for the purchase of the factory, land, and machine. (Record debits first, then credits. Exclude explanations from journal entries. Round your answers to the nearest whole dollar.)
Date
Account Titles
Credit
March 1
How do I enter these jornal entry
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