Presented below is information related to Novak Company.1. On July 6, Novak Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraisedvalue of the property is:LandBuildingsEquipmentTotal$600,0001,800,0001,200,000$3,600,000Novak Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per shareon the date of the purchase of the property.2. Novak Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied thebuilding.Repairs to buildingConstruction of bases for equipment to be installed laterDriveways and parking lotsRemodeling of office space in building, including new partitions and wallsSpecial assessment by city on land$315,000405,000366,000483,00054,0003. On December 20, the company paid cash for equipment, $780,000, subject to a 2% cash discount, and freight on equipment of$31,500.Prepare entries on the books of Novak Company for these transactions. (Do not round intermediate calculations and final answers to 0decimal places e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

Solution:No. General JournalDebit $Credit $1.1.Land$ 350,000Building$…

Presented below is information related to Novak Company. 1. On July 6, Novak Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land Buildings Equipment Total $600,000 1,800,000 1,200,000 $3,600,000 Novak Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the purchase of the property. 2. Novak Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the

Presented below is information related to Novak Company. 1. On July 6, Novak Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land Buildings Equipment Total $600,000 1,800,000 1,200,000 $3,600,000 Novak Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the purchase of the property. 2. Novak Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the

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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