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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Ivanhoe Equipment Company sells computers for $1,620 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. In 2025, the company sold 860 computers on account. Based on experience, the company has estimated the total 2-year warranty costs as $40 for parts and $60 for labor per unit. (Assume sales all occur at December 31, 2025.) In 2026, Ivanhoe incurred actual warranty costs relative to 2025 computer sales of $13,200 for parts and $19,800 for labor. Record the entries to reflect the above transactions (accrual method) for 2025 and 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation 2025 2026 2025 Cash Sales Revenue (To record sale of computers) Warranty Expense Warranty…

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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.

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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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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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