Plant acquisitions for selected companies are as follows. 1. Sheffield Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $938,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values Appraisal Values Land $268,000 $201,000 Buildings 335,000 469,000 Equipment 402,000 402,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 201,000 Buildings 335,000 Equipment 402,000 Cash 938,000 2. Tamarisk Enterprises purchased store equipment by making a $2,680 cash down payment and signing a 1-year, $30,820, 10% note payable. The purchase was recorded as follows. Equipment 36,582

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Plant acquisitions for selected companies are as follows.
1. Sheffield Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of
$938,000. At the time of purchase, Torres's assets had the following book and appraisal values.
Book Values
Appraisal
Values
Land
$268,000
$201,000
Buildings
335,000
469,000
Equipment
402,000
402,000
To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made.
Land
201,000
Buildings
335,000
Equipment
402,000
Cash
938,000
2. Tamarisk Enterprises purchased store equipment by making a $2,680 cash down payment and signing a 1-year, $30,820, 10% note
payable. The purchase was recorded as follows.
Equipment
36,582
Transcribed Image Text:Plant acquisitions for selected companies are as follows. 1. Sheffield Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $938,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values Appraisal Values Land $268,000 $201,000 Buildings 335,000 469,000 Equipment 402,000 402,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 201,000 Buildings 335,000 Equipment 402,000 Cash 938,000 2. Tamarisk Enterprises purchased store equipment by making a $2,680 cash down payment and signing a 1-year, $30,820, 10% note payable. The purchase was recorded as follows. Equipment 36,582
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