Cost concept : This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. To describe : The recording of purchase of land in the books of KR Service

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Chapter 1, Problem 1.1APE

To determine

Cost concept:

This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost.

To describe: The recording of purchase of land in the books of KR Service

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On February 3, Gallatin Repair Service extended an offer of $152,000 for land that had been priced for sale at $173,000. On February 28, Gallatin Repair Service accepted the seller's counteroffer of $165,000. On October 23, the land was assessed at a value of $248,000 for property tax purposes. On January 15 of the next year, Gallatin Repair Service was offered $264,000 for the land by a national retail chain. At what value should the land be recorded in Gallatin Repair Service's records?

Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $125,000 Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. c. Which of the following appraisals would Bob likely prefer? 1. The appraised value of the warehouse was $75,000, and of the land was $100,000. 2. The appraised value of the warehouse was $50,000 and of the land was $125,000. Bob's Preference

Fresh Veggies, Incorporated (FVI), purchases land and a warehouse for $490,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker's commission, $29,000; title insurance, $1,900; and miscellaneous closing costs, $6,000. The warehouse is immediately demolished at a cost of $29,000 in anticipation of building a new warehouse. Determine the cost of the land and record the purchase (assuming cash was paid for all expenditures). (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of the land. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general Journal

Answer 2

Question

Chapter 1, Problem 1.1APE

To determine

Cost concept:

This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost.

To describe: The recording of purchase of land in the books of KR Service

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Answer 3

Question

Chapter 1, Problem 1.1APE

To determine

Cost concept:

This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost.

To describe: The recording of purchase of land in the books of KR Service

Expert Solution & Answer

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Answer 4

Question

Chapter 1, Problem 1.1APE

To determine

Cost concept:

This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost.

To describe: The recording of purchase of land in the books of KR Service

Expert Solution & Answer

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Answer 5

Chapter 1, Problem 1.1APE

To determine

Cost concept:

This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost.

To describe: The recording of purchase of land in the books of KR Service

Answer 6

Chapter 1, Problem 1.1APE

To determine

Cost concept:

This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost.

To describe: The recording of purchase of land in the books of KR Service

Answer 7

Chapter 1, Problem 1.1APE

To determine

Cost concept:

This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost.

To describe: The recording of purchase of land in the books of KR Service

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQ Ch. 1 - Prob. 3DQ Ch. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQ Ch. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - A business had revenues of 640,000 and operating...Ch. 1 - The financial statements are interrelated. (a)...

Cost concept : This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. To describe : The recording of purchase of land in the books of KR Service

Solution Summary: The author explains that KR Service should record the purchase of land at 230,000, the actual cost paid by the company.

Cost concept:

This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost.

To describe: The recording of purchase of land in the books of KR Service

Want to see the full answer?

Chapter 1 Solutions

Cost concept : This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. To describe : The recording of purchase of land in the books of KR Service

Solution Summary: The author explains that KR Service should record the purchase of land at 230,000, the actual cost paid by the company.

Cost concept: This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. To describe: The recording of purchase of land in the books of KR Service

Want to see the full answer?

Chapter 1 Solutions

Cost concept:

This is an accounting concept which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost.

To describe: The recording of purchase of land in the books of KR Service