Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 8, Problem 2E
Summary Introduction
Introduction: The cost of fixed assets includes the purchase price of asset and all the expenses incurred for installing asset and making the asset to be operationalize. All the expenses of freight, additional cost incurred at the time of purchase of asset is added in the cost of the asset to be recorded.
To prepare: Thejournal entry to record the cost of asset purchased.
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1.
Cala Manufacturing purchases a large lot onwhich an old building is located as part of its plans to build a new plant.The negotiated purchase price is $269,000 for the lot plus $164,000 for theold building. The company pays $26,200 to tear down the old building and$38,730 to fill and level the lot. It also pays a total of $1,545,568 inconstruction costs—this amount consists of $1,453,800 for the new buildingand $91,768 for lighting and paving a parking area next to the building.
Prepare a single journal entry to recordthese costs incurred by Cala, all of which are paid in cash.
Liltua Company pays$385,000 for real estate plus $20,405 in closing costs. The real estateconsists of land appraised at $214,200; land improvements appraised at$102,000; and a building appraised at $193,800.
2.Allocate the totalcost among the three purchased assets.(Round your “Apportioned Cost” answers to 2decimal places.)
rev:11_26_2013_QC_41255
3.Prepare the journal entry to record the purchase.(Round…
Cala Manufacturing purchases land for $459,000 as part
of its plans to build a new plant. The company pays
$39,800 to tear down an old building on the lot and
$58,835 to fill and level the lot. It also pays construction
costs of $1,498,000 for the new building and $94,558 for
lighting and paving a parking area.
Prepare a single journal entry to record these costs
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View transaction list
Journal entry worksheet
A
Record the total costs of the plant assets.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Record entry
Clear entry
View genera
Cala Manufacturing purchases land for $451,000 as part of its plans to build a new plant. The company pays $26,600 to tear down an old building on the lot and $39,322 to fill and level the lot. It also pays construction costs $1,748,500 for the new building and $110,371 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.
Chapter 8 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Identify events that might lead to disposal of a...Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Refer to the December 31, 2016, balance sheet of...Ch. 8 - Prob. 20DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Identify the following assets a through i as...Ch. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Caleb Co. owns a machine that costs $42,400 with...Ch. 8 - Prob. 15QSCh. 8 - Prob. 16QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - On January 2, 2018, Bering Co. disposes of a...Ch. 8 - Prob. 25ECh. 8 - Prob. 26ECh. 8 - Timberly Construction negotiates a lump-sum...Ch. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Onslow Co. purchases a used machine for $178,000...Ch. 8 - Prob. 7PSACh. 8 - Prob. 8PSACh. 8 - Prob. 2PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Prob. 6PSBCh. 8 - Prob. 7PSBCh. 8 - Prob. 8PSBCh. 8 - Selected ledger account balances for Business...Ch. 8 - Prob. 3FSACh. 8 - Prob. 5BTN
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