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FINANCIAL ACCOUNTING
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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Zeidler Company bought a building and the land on which the building is located for a total cash price of $183,500. The company paid transfer costs of $3,100. Renovation costs on the building were $14,320. An independent appraiser provided market values for the land, $220,000, and building, $880,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.) Item Building Land Apportioned cost $ No 1 0 Renovation cost Transaction 1 Purchase cost 2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet $ Building Land Cash 0 General Journal Debit Credit
Transcribed Image Text:Zeidler Company bought a building and the land on which the building is located for a total cash price of $183,500. The company paid transfer costs of $3,100. Renovation costs on the building were $14,320. An independent appraiser provided market values for the land, $220,000, and building, $880,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.) Item Building Land Apportioned cost $ No 1 0 Renovation cost Transaction 1 Purchase cost 2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet $ Building Land Cash 0 General Journal Debit Credit
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