Easter Company manufactures Easter chocolates and has been in operation for the pst 5 years. During the 2023 fiscal year, Easter Company purchased the following assets using a variety of financing alternatives. Easter Company follows FRS and has a December 319 year-end.Asset 1Easter Company obtained a new photocopier worth $215,000 in exchange for 9,000 common shares. At that time, the common shares of Easter Company were trading on the stock market for $25 each.Asset 2On September 1, 2023 Easter Company purchased new equipment for $500,000. The company plans on using the equipment for 10 years. During that time, it is expected the equipment will be used for a total of 30,000 machi hours. At the end of 10 years, it is estimated that the equipment will be sold for 550,000. During 2023, the equipment was used for a totall of 4,500 machine hours.Assets 3 & 4and building were acquired for a lump sum price of $1,500,000 which was paid in cash. At the time of the land was appraised at $612, 500 and the building was appraised at $1,137,500. ne journal entry recording

Easter Company manufactures Easter chocolates and has been in operation for the pst 5 years. During the 2023 fiscal year, Easter Company purchased the following assets using a variety of financing alternatives. Easter Company follows FRS and has a December 319 year-end.Asset 1Easter Company obtained a new photocopier worth $215,000 in exchange for 9,000 common shares. At that time, the common shares of Easter Company were trading on the stock market for $25 each.Asset 2On September 1, 2023 Easter Company purchased new equipment for $500,000. The company plans on using the equipment for 10 years. During that time, it is expected the equipment will be used for a total of 30,000 machi hours. At the end of 10 years, it is estimated that the equipment will be sold for 550,000. During 2023, the equipment was used for a totall of 4,500 machine hours.Assets 3 & 4and building were acquired for a lump sum price of $1,500,000 which was paid in cash. At the time of the land was appraised at $612, 500 and the building was appraised at $1,137,500. ne journal entry recording

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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