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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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