Prepare journal entries for Goodman and Harmes to record the exchange.
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- McCoy's Fish House purchases a tract of land and an existing building for $880,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $1,800. The company also pays $11,600 in property taxes, which includes $7,800 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $3,800 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $44,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $6,800 and pays an additional $11,900 to level the land. Required: Determine the amount McCoy's Fish House should record as the cost of the land. (Amounts to be deducted should be indicated by a minus sign.) Total cost of the landRiker receives $43,000 from Troy as payment for a vehicle that has a fair value of $54,300. The $43,000 constitutes full payment for the vehicle as specified in the sales contract. Assume that the time value of money is viewed as significant for this contract. Required: (a) Did Troy pay Riker before or after delivery of the vehicle? (b) Prepare the journal entry Riker would make to record receipt of Troy’s payment, assuming no interest revenue or interest expense had been recorded previously. (c) Prepare the journal entry Riker would make to record delivery of the vehicle, assuming no interest revenue or interest expense had been recorded previously.Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $221,567. Focus Company initially offered to buy the land for $181,076. The companies settled on a purchase price of $209,946. On the same day, another piece of land on the same block sold for $231,997. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company? Oa. $221,567 Ob. $231,997 Oc. $209,946 Od. $181,076
- Cala Manufacturing purchases land for $297,000 as part of its plans to build a new plant. The company pays $27,300 to tear down an old building on the lot and $40,356 to fill and level the lot. It also pays construction costs of $1,791,300 for the new building and $113,072 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Land 297,000 Building Land improvements Record entry Clear entry View generaEverett Company purchased land and a modern office building on March 1, 20-1 for a combined price of $600,000. $400,000 was paid in cash with the remainder owing on a 5% note payable. The land had a cost of $350,000 and the building had a net book value of $100,000 on the seller's books. The land and building had fair market values of $390,000 and $210,000, respectively on March 1. Everett made the following entry at acquisition?Rizio Co. purchases a machine for $9,500, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $95 discount. Transportation costs of $215 were paid by Rizio. The machine required mounting and power connections costing $657. Another $310 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $210 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
- Cala Manufacturing purchases land for $390,000 as part of its plans to build a new plant. The company pays $33,500 to tear down an old building on the lot and $47,000 to fill and level the lot. It also pays construction costs of $1,452,200 for the new building and $87,800 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.In the current year, Company A made the following cash purchases: 1. The exclusive right to manufacture and sell equipment from Company B for $203,000. Company B created the unique design for the equipment. Company A also paid an additional $11,500 in legal and filing fees to attorneys to complete the transaction. 2. An initial fee of $260,000 for a three-year agreement with Company C to use its name for a new facility in the local area. Company C has locations throughout the country. Company A is required to pay an additional fee of $5,300 for each month it operates under the Company C name, with payments beginning in March of the current year. Company A also purchased $403,000 of equipment to be placed in the new facility. 3. The exclusive right to sell a book, for $22,000. Required: Prepare a summary journal entry to record expenditures related to initial acquisitions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account…Hot Dogs exchanges long-term assets with Lizzy's Lemonade. Nate receives a delivery truck and gives up a piece of machinery. The fair value and book value of the machinery were $31,000 and $20,000 (original cost of $31,000 less accumulated depreciation of $11,000), respectively. Since the delivery truck was worth $35,000, Nate paid an additional $4,000 in cash to Lizzy. Record the exchange for Nate's Hot Dogs. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the exchange for Nate's Hot Dogs. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
- McCoy’s Fish House purchases a tract of land and an existing building for $1,000,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $3,000. The company also pays $14,000 in property taxes, which includes $9,000 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $5,000 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $50,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $5,000 and pays an additional $11,000 to level the land.Required: Determine the amount McCoy’s Fish House should record as the cost of the land.What are my journal entries? Traded the company car (Automobile) for a newer one at Plume Motors. The old car originally cost $23,000 and is depreciated up-to-date in the amount of $19,000. A trade-in allowance of $5,500 was given. The new car had a market value of $40,000 and the balance was paid in cash. The new car should last at least 100,000 miles and will be depreciated at $0.375 per mile.Rodriguez Company pays $352, 755 for real estate with land, land improvements, and a building. Land is appraised at $207,000; land improvements are appraised at $69,000; and the building is appraised at $184,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Allocate the total cost among the three assets. Note: Round your "Apportioned Cost" answers to 2 decimal places. \table[[ \table[[Appraised], [Value]],\table[[Percent of Total], [Appraised], [Value]],\table[[x Total Cost of], [Acquisition]],\table[[Apportioned], [Cost]]]. [Land,...]. [Land improvements...]. [Building....]]