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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The following data were selected from the records of Fluwars Company for the year ended December 31, current year: Balances at January 1, current year: Accounts receivable (various customers) $ 111,500 Allowance for doubtful accounts 11,200 The company sold merchandise for cash and on open account with credit terms 1/10, n/30, without a right of return. The following transactions occurred during the current year: Sold merchandise for cash, $252,000. Sold merchandise to Abbey Corp; invoice amount, $36,000. Sold merchandise to Brown Company; invoice amount, $47,600. Abbey paid the invoice in (b) within the discount period. Sold merchandise to Cavendish Inc.; invoice amount, $50,000. Collected $113,100 cash from customers for credit sales made during the year, all within the discount periods. Brown paid its account in full within the discount period. Sold merchandise to Decca Corporation; invoice amount, $42,400. Cavendish paid its account in full after the…

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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.

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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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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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