Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 6, Problem 6E
LO 8-1 Exercise 8-6 A Allocating costs for a basket purchase
Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the assets was as follows:
| Land | $180,000 |
| Building | 300,000 |
| Furniture | 120,000 |
| Total | $600,000 |
Required
- a. Compute the amount to be recorded on the books for each asset.
- b. Show the purchase in a horizontal statements model like the following one:
- c. Prepare the general
journal entry to record the purchase.
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LO 2
Cash +
Land
Assets
+
Exercise 8-6A Allocating costs for a basket purchase
Jourdan Company purchased a restaurant building, land, and equipment for $700,000 cash. The
appraised value of the assets was as follows:
Land
Building
Equipment
Total
Building + Equip.
Required
a. Compute the amount to be recorded on the books for each of the assets.
b. Record the purchase in a horizontal statements model like the following one.
$160,000
400,000
240,000
$800,000
= Liab. + Equity Rev.
Exp.
c. Prepare the general journal entry to record the purchase.
= Net Inc.
Cash Flow
Hello, can i please have a solution for this
Exercise 8-3 Lump-sum purchase of plant assets LO C1
Rodriguez Company pays $368,550 for real estate with land, land improvements, and a building. Land is appraised at $225,000; land
improvements are appraised at $75,000; and a building is appraised at $200,000.
Required:
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. (Round your "Apportioned Cost" answers to 2 decimal places.)
Appraised
Value
Percent of Total
Appraised
Value
x Total Cost of
Acquisition
= Apportioned
Cost
Land
$
225,000
45%
Land improvements
75,000
Building
200,000
Totals
$
500,000
45%
2$
0.00
Required 1
Required 2 >
Chapter 6 Solutions
Survey Of Accounting
Ch. 6 - 1. What is the difference between the functions of...Ch. 6 - Prob. 2QCh. 6 - Prob. 3QCh. 6 - 4. Define depreciation. What kind of asset...Ch. 6 - Prob. 5QCh. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - 8. Explain the historical cost concept as it...Ch. 6 - Prob. 9QCh. 6 - Prob. 10Q
Ch. 6 - Prob. 11QCh. 6 - 12. Explain straight-line, units-of-production,...Ch. 6 - Prob. 13QCh. 6 - Prob. 14QCh. 6 - Prob. 15QCh. 6 - Prob. 16QCh. 6 - 17. What is salvage value?Ch. 6 - Prob. 18QCh. 6 - Prob. 19QCh. 6 - Prob. 20QCh. 6 - Prob. 21QCh. 6 - 22. Why would a company choose to depreciate one...Ch. 6 - Prob. 23QCh. 6 - 27. How are capital expenditures made to improve...Ch. 6 - Prob. 25QCh. 6 - Prob. 26QCh. 6 - Prob. 27QCh. 6 - Prob. 28QCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - LO 8-1 Exercise 8-6 A Allocating costs for a...Ch. 6 - Effect of depreciation on the accounting equation...Ch. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Prob. 10ECh. 6 - Events related to the acquisition, use, and...Ch. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Prob. 17ECh. 6 - Prob. 18ECh. 6 - Prob. 19ECh. 6 - Prob. 20ECh. 6 - Prob. 21ECh. 6 - Accounting for acquisition of assets, including a...Ch. 6 - Calculating depreciation expense using three...Ch. 6 - Determining the effect of depreciation expense on...Ch. 6 - Prob. 25PCh. 6 - Prob. 26PCh. 6 - Prob. 27PCh. 6 - Prob. 28PCh. 6 - Revision of estimated salvage value Delta Machine...Ch. 6 - Purchase and use of tangible asset: Three...Ch. 6 - Recording continuing expenditures for plant assets...Ch. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - Performing ratio analysis using real-world data...Ch. 6 - Prob. 1ATCCh. 6 - ATC 6-3 Research Assignment Comparing Microsofts...Ch. 6 - Prob. 4ATCCh. 6 - ATC 6-5 Ethical Dilemma Whats an expense? Several...
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