Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1.1BE
To determine
Cost principle: This is an accounting principle 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 RR Service.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Cost ConceptT
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?
Cost Concept
On February 3, Clairemont Repair Service extended an offer of $133,000 for land that had been priced for sale at $152,000. On February 28,
Clairemont Repair Service accepted the seller's counteroffer of $145,000. On October 23, the land was assessed at a value of $218,000 for
property tax purposes. On January 15 of the next year, Clairemont Repair Service was offered $232,000 for the land by a national retail
chain.
At what value should the land be recorded in Clairemont Repair Service's records?
Cost Principle
On June 25, McCade Repair Service extended an offer of $128,000 for land that had been priced for sale at $146,000. On July9, McCade Repair Service
accepted the seller's counteroffer of $139,000. On October 1, the land was assessed at a value of $209,000 for property tax purposes. On December 22,
McCade Repair Service was offered $222,000 for the land by a national retail chain.
At what value should the land be recorded in McCade Repair Service's records?
Chapter 1 Solutions
Financial & Managerial Accounting
Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - Prob. 9DQCh. 1 - The financial statements are interrelated. What...
Ch. 1 - Prob. 1.1BECh. 1 - Prob. 1.2BECh. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Prob. 1.5BECh. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Types of businesses The following is a list of...Ch. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Accounting equation The total assets and total...Ch. 1 - Prob. 1.5EXCh. 1 - Accounting equation Determine the missing amount...Ch. 1 - Prob. 1.7EXCh. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Effect of transactions on stockholders equity...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items From the following list of...Ch. 1 - Prob. 1.18EXCh. 1 - Income statement Imaging Services was organized on...Ch. 1 - Missing amounts from balance sheet and income...Ch. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Financial statements We-Sell Realty, organized as...Ch. 1 - Transactions On September 1 of the current year,...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Prob. 1.4BPRCh. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amount from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Prob. 1ADMCh. 1 - Home Depot: Ratio of liabilities to stockholders'...Ch. 1 - Lowes: Ratio of liabilities to stockholders equity...Ch. 1 - Prob. 4ADMCh. 1 - Ethics in Action Marco Brolo is one of three...Ch. 1 - Prob. 1.3TIF
Knowledge Booster
Similar questions
- Don't give answer in imagearrow_forwardWanting 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 Preferencearrow_forwardWanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $215,000. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Problem 10-45 Part b (Algo) b. What would be Bob's basis in the warehouse and in the land if the appraised value of the warehouse was $87,500, and the appraised value of the land was $215,000? Warehouse Land Bob's Basisarrow_forward
- On June 25, Obermayer Repair Service extended an offer of $135,000 for land that had been priced for sale at $154,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $147,000. On October 1, the land was assessed at a value of $221,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $235,000 for the land by a national retail chain. At what value should the land be recorded in Obermayer Repair Service's records?$arrow_forwardOn March 31, Higgins Repair Service extended an offer of $415,000 for land that had been priced for sale at $460,000. On April 15, Higgins Repair Service accepted the seller’s counteroffer of $437,500. On September 9, the land was assessed at a value of $375,000 for property tax purposes. On December 8, Higgins Repair Service was offered $475,000 for the land by a national retail chain.At what value should the land be recorded in Higgins Repair Service's records?arrow_forwardOn June 25, AAA Repair Service extended an offer of $76,000 for land that had been priced for sale at $87,000. On July 9, AAA Repair Service accepted the seller's counteroffer of $83,000. On October 1, the land was assessed at a value of $125,000 for property tax purposes. On December 22, AAA Repair Service was offered $133,000 for the land by a national retail chain. At what value should the land be recorded in AAA Repair Service's records? %24arrow_forward
- On June 25, Tin Roofing extended an offer of $114,000 for land that had been priced for sale at $130,000. On July 9, Tin Roofing accepted the seller's counteroffer of $124,000. On October 1, the land was assessed at a value of $186,000 for property tax purposes. On December 22, Tin Roofing was offered $198,000 for the land by a national retail chain. At what value should the land be recorded in Tin Roofing's records? fill in the blank 1 of 1$.arrow_forwardVikrambhaiarrow_forwardOn June 25, Obermayer Repair Service extended an offer of $90,000 for land that had been priced for sale at $103,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $98,000. On October 1, the land was assessed at a value of $147,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $157,000 for the land by a national retail chain. At what value should the land be recorded in Obermayer Repair Service's records?$fill in the blankarrow_forward
- On June 25, Tin Roofing extended an offer of $88,000 for land that had been priced for sale at $101, 000. On July 9, Tin Roofing accepted the seller's counteroffer of $ 96,000. On October 1, the land was assessed at a value of $144,000 for property tax purposes. On December 22, Tin Roofing was offered $154,000 for the land by a national retail chain. At what value should the land be recorded in Tin Roofing's records?arrow_forwardOn 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?arrow_forwardOn June 25, McCade Repair Service extended an offer of $109,000 for land that had been priced for sale at $124,000. On July 9, McCade Repair Service accepted the seller's counteroffer of $118,000. On October 1, the land was assessed at a value of $177,000 for property tax purposes. On December 22, McCade Repair Service was offered $189,000 for the land by a national retail chain. At what value should the land be recorded in McCade Repair Service's records?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
