Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase. Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase. That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices. The separate value of the asset indicates the relative market value of the asset. Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations: Disposal with no gain no loss: When the asset is disposed with no consideration received. Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation ). Disposal with loss: When the asset is disposed for less than its book value. To record: the journal entry for the purchase of the office equipment with cash and note payable financing on January 1, 2018.

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Answer 1

Question

Chapter 9, Problem 9.32AP

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

To record: the journal entry for the purchase of the office equipment with cash and note payable financing on January 1, 2018.

To determine

To record: the journal entry for the lump-sum purchase of land and communication equipment on April 1, 2018.

To determine

To record: the journal entry for the depreciation expense of the building sold on September 1, 2018.

To determine

To record: the journal entry for the disposal of the building on September 1, 2018.

To determine

To record: the journal entry for the depreciation expense of the communication equipment on December 31, 2018.

To determine

To record: the journal entry for the depreciation expense of the office equipment on December 31, 2018.

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Answer 2

Question

Chapter 9, Problem 9.32AP

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

To record: the journal entry for the purchase of the office equipment with cash and note payable financing on January 1, 2018.

To determine

To record: the journal entry for the lump-sum purchase of land and communication equipment on April 1, 2018.

To determine

To record: the journal entry for the depreciation expense of the building sold on September 1, 2018.

To determine

To record: the journal entry for the disposal of the building on September 1, 2018.

To determine

To record: the journal entry for the depreciation expense of the communication equipment on December 31, 2018.

To determine

To record: the journal entry for the depreciation expense of the office equipment on December 31, 2018.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 9.32AP

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

To record: the journal entry for the purchase of the office equipment with cash and note payable financing on January 1, 2018.

To determine

To record: the journal entry for the lump-sum purchase of land and communication equipment on April 1, 2018.

To determine

To record: the journal entry for the depreciation expense of the building sold on September 1, 2018.

To determine

To record: the journal entry for the disposal of the building on September 1, 2018.

To determine

To record: the journal entry for the depreciation expense of the communication equipment on December 31, 2018.

To determine

To record: the journal entry for the depreciation expense of the office equipment on December 31, 2018.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 9.32AP

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

To record: the journal entry for the purchase of the office equipment with cash and note payable financing on January 1, 2018.

To determine

To record: the journal entry for the lump-sum purchase of land and communication equipment on April 1, 2018.

To determine

To record: the journal entry for the depreciation expense of the building sold on September 1, 2018.

To determine

To record: the journal entry for the disposal of the building on September 1, 2018.

To determine

To record: the journal entry for the depreciation expense of the communication equipment on December 31, 2018.

To determine

To record: the journal entry for the depreciation expense of the office equipment on December 31, 2018.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 9.32AP

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

To record: the journal entry for the purchase of the office equipment with cash and note payable financing on January 1, 2018.

To determine

To record: the journal entry for the lump-sum purchase of land and communication equipment on April 1, 2018.

To determine

To record: the journal entry for the depreciation expense of the building sold on September 1, 2018.

To determine

To record: the journal entry for the disposal of the building on September 1, 2018.

To determine

To record: the journal entry for the depreciation expense of the communication equipment on December 31, 2018.

To determine

To record: the journal entry for the depreciation expense of the office equipment on December 31, 2018.

Answer 6

Chapter 9, Problem 9.32AP

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

To record: the journal entry for the purchase of the office equipment with cash and note payable financing on January 1, 2018.

Answer 7

Chapter 9, Problem 9.32AP

To determine

Lump-sum (Group) Purchase of asset: Lump-sum purchase is a method of assignment of the cost of land and other assets. Sometimes, a company may purchase land and other assets in a lump-sum amount. In group purchase method, the lump-sum amount is apportioned between the various components of the lump-sum purchase.

Lump-sum purchase consists of purchase of other assets with land by paying a lump-sum amount. It is also called basket purchase.

That lump-sum amount (100%) is apportioned among land and other asset on the basis of their separate prices.

The separate value of the asset indicates the relative market value of the asset.

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

To record: the journal entry for the purchase of the office equipment with cash and note payable financing on January 1, 2018.

Answer 8

To determine

To record: the journal entry for the lump-sum purchase of land and communication equipment on April 1, 2018.

Answer 9

To determine

To record: the journal entry for the lump-sum purchase of land and communication equipment on April 1, 2018.

Answer 10

To determine

To record: the journal entry for the depreciation expense of the building sold on September 1, 2018.

Answer 11

To determine

To record: the journal entry for the depreciation expense of the building sold on September 1, 2018.

Answer 12

To determine

To record: the journal entry for the disposal of the building on September 1, 2018.

Answer 13

To determine

To record: the journal entry for the disposal of the building on September 1, 2018.

Answer 14

To determine

To record: the journal entry for the depreciation expense of the communication equipment on December 31, 2018.

Answer 15

To determine

To record: the journal entry for the depreciation expense of the communication equipment on December 31, 2018.

Answer 16

To determine

To record: the journal entry for the depreciation expense of the office equipment on December 31, 2018.

Answer 17

To determine

To record: the journal entry for the depreciation expense of the office equipment on December 31, 2018.

Answer 18

Expert Solution & Answer

Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

Ch. 9 - Prob. 1QC Ch. 9 - Prob. 2QC Ch. 9 - Which method almost always produces the most...Ch. 9 - A Celty Airline jet costs 28,000,000 and is...Ch. 9 - A copy machine costs 45,000 when new and has...Ch. 9 - Suppose Print and Photo Center in the preceding...Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Liberty Corporation reported beginning and ending...Ch. 9 - A truck costs 50,000 when new and has accumulated...

To record: the journal entry for the lump-sum purchase of land and communication equipment on April 1, 2018.

To record: the journal entry for the depreciation expense of the building sold on September 1, 2018.

To record: the journal entry for the disposal of the building on September 1, 2018.

To record: the journal entry for the depreciation expense of the communication equipment on December 31, 2018.

To record: the journal entry for the depreciation expense of the office equipment on December 31, 2018.

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