Rodriguez Company pays $326,430 for real estate with land, land improvements, and a building. Land is appraised at $265,000; land improvements are appraised at $79,500; and the building is appraised at $185,500. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. Note: Round your "Apportioned Cost" answers to 2 decimal places.

Rodriguez Company pays $326,430 for real estate with land, land improvements, and a building. Land is appraised at $265,000; land improvements are appraised at $79,500; and the building is appraised at $185,500. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. Note: Round your "Apportioned Cost" answers to 2 decimal places.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.1.1P

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Question

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Rodriguez Company pays $326,430 for real estate with land, land improvements, and a building. Land is appraised at $265,000; land
improvements are appraised at $79,500; and the building is appraised at $185,500.
1. Allocate the total cost among the three assets.
2. Prepare the journal entry to record the purchase.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Allocate the total cost among the three assets.
Note: Round your "Apportioned Cost" answers to 2 decimal places.
Land
Land improvements
Building
Totals
Appraised
Value
$
$
265,000
79,500
185,500
530,000
Percent of Total x Total Cost of
Appraised Value Acquisition
50%
15%
35%
100%
< Required 1
= Apportioned
Cost
$
$
163,215.00
163,215.00
Required 2 >

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Step 1: Introduction of Lum sump payment for acquisition of asset

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Step 3: Journalizing the purchase of assets transactions

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