To allocate: Purchase cost to each required asset. Given information: Cost of expansion is $5,000,000. Fair value of building is $3,200,000. Fair value of land is $1,600,000. Fair value of Machinery and equipment is $864,000. Fair value of inventory is $183,500. Fair value of manufacturing supplies is $52,500.

Question

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Answer 1

Question

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

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No AI The accounting principle that requires matching revenues with related expenses is the:A. Going Concern PrincipleB. Matching PrincipleC. Cost PrincipleD. Full Disclosure Principle

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The accounting principle that requires matching revenues with related expenses is the:A. Going Concern PrincipleB. Matching PrincipleC. Cost PrincipleD. Full Disclosure Principle

Answer 2

Question

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

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Answer 3

Question

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

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Answer 4

Question

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

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Answer 5

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

Answer 6

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

Answer 7

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

Answer 8

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

Answer 9

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

Answer 10

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

Answer 11

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 11 - Stephen J. Cosgrove is the Former Vice President....Ch. 11 - Prob. 11.2Q Ch. 11 - Prob. 11.3Q Ch. 11 - Prob. 11.4Q Ch. 11 - Will the expense/capitalization choice impact...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - For a long-lived operating asset acquired by...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

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Chapter 11 Solutions