Homework Help is Here – Start Your Trial Now!
Business
Accounting
Problem 23-5 (IAA) quisitions 1. Nutty Company made the following individual cash purchases: ,000,000 taken. Land and building Machinery and office equipment Delivery equipment 6,000,000 1,800,000 500,000 the old lachine An appraisal disclosed the following fair value: 1,000,000 3,000,000 800,000 400,000 350,000 Land entity onthly chine Building Machinery Office equipment Delivery equipment 2. Nutty Company acquired the assets of another entity with the following fair value: sed a 1,000,000 5,000,000 2,000,000 erest Land Building Machinery The The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. of ary 3. Received a parcel of land located in Davao City from a philanthropist as an inducement to locate a plant in the city. The land has a fair value of P1,500,000. is 4. The entity paid cash for machinery, P900,000 subject to 2% cash discount, and freight on machinery, P35,000. a 5. The entity acquired furniture and fixtures by issuing a P400,000 two-year noninterest-bearing note. In similar transactions, the entity has paid 12% interest. The present value of 1 at 12% for 2 years is .797, and the present value of an annuity of 1 at 12% for 2 years is 1.69. Required: Prepare journal entries to record the transactions. 653

Problem 23-5 (IAA) quisitions 1. Nutty Company made the following individual cash purchases: ,000,000 taken. Land and building Machinery and office equipment Delivery equipment 6,000,000 1,800,000 500,000 the old lachine An appraisal disclosed the following fair value: 1,000,000 3,000,000 800,000 400,000 350,000 Land entity onthly chine Building Machinery Office equipment Delivery equipment 2. Nutty Company acquired the assets of another entity with the following fair value: sed a 1,000,000 5,000,000 2,000,000 erest Land Building Machinery The The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. of ary 3. Received a parcel of land located in Davao City from a philanthropist as an inducement to locate a plant in the city. The land has a fair value of P1,500,000. is 4. The entity paid cash for machinery, P900,000 subject to 2% cash discount, and freight on machinery, P35,000. a 5. The entity acquired furniture and fixtures by issuing a P400,000 two-year noninterest-bearing note. In similar transactions, the entity has paid 12% interest. The present value of 1 at 12% for 2 years is .797, and the present value of an annuity of 1 at 12% for 2 years is 1.69. Required: Prepare journal entries to record the transactions. 653

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Problem 23-5 (IAA) quisitions 1. Nutty Company made the following individual cash purchases: ,000,000 taken. Land and building Machinery and office equipment Delivery equipment 6,000,000 1,800,000 500,000 the old lachine An appraisal disclosed the following fair value: 1,000,000 3,000,000 800,000 400,000 350,000 Land entity onthly chine Building Machinery Office equipment Delivery equipment 2. Nutty Company acquired the assets of another entity with the following fair value: sed a 1,000,000 5,000,000 2,000,000 erest Land Building Machinery The The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. of ary 3. Received a parcel of land located in Davao City from a philanthropist as an inducement to locate a plant in the city. The land has a fair value of P1,500,000. is 4. The entity paid cash for machinery, P900,000 subject to 2% cash discount, and freight on machinery, P35,000. a 5. The entity acquired furniture and fixtures by issuing a P400,000 two-year noninterest-bearing note. In similar transactions, the entity has paid 12% interest. The present value of 1 at 12% for 2 years is .797, and the present value of an annuity of 1 at 12% for 2 years is 1.69. Required: Prepare journal entries to record the transactions. 653
Transcribed Image Text:Problem 23-5 (IAA) quisitions 1. Nutty Company made the following individual cash purchases: ,000,000 taken. Land and building Machinery and office equipment Delivery equipment 6,000,000 1,800,000 500,000 the old lachine An appraisal disclosed the following fair value: 1,000,000 3,000,000 800,000 400,000 350,000 Land entity onthly chine Building Machinery Office equipment Delivery equipment 2. Nutty Company acquired the assets of another entity with the following fair value: sed a 1,000,000 5,000,000 2,000,000 erest Land Building Machinery The The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. of ary 3. Received a parcel of land located in Davao City from a philanthropist as an inducement to locate a plant in the city. The land has a fair value of P1,500,000. is 4. The entity paid cash for machinery, P900,000 subject to 2% cash discount, and freight on machinery, P35,000. a 5. The entity acquired furniture and fixtures by issuing a P400,000 two-year noninterest-bearing note. In similar transactions, the entity has paid 12% interest. The present value of 1 at 12% for 2 years is .797, and the present value of an annuity of 1 at 12% for 2 years is 1.69. Required: Prepare journal entries to record the transactions. 653
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS