2. Humbolt Hardware Company recently negotiated a lump-sum purchase of several assets from another business. They completed the purchase on August 31, 2021, at a total cash price of $641,129 which included land, parking lot, truck, and building. The estimated fair market values of the assets were land $341,378, parking lot $16,182, truck $22,232, and building $274,421. The Company has a December 31 year-end. Prepare a schedule to allocate the lump-sum purchase to separate assets. Also, prepare the general journal entry to record the transaction.
Q: (b) On January 1, 2020, Pearl Furniture borrowed $5,900,000 (face value) from Sinise Co, a major…
A: A zero-interest note seems to be a debt that does not include the written obligation that the…
Q: Michael Chan purchased 100% of the issued shares of Quality Rest Inc., a Canadian-controlled private…
A: INTRODUCTION: A tax is a necessary fee or financial charge imposed by a government on an individual…
Q: Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as…
A: A lease is defined as the contract between two parties for use of an asset. The rent which the…
Q: Indicate the effects of the following business transactions on the accounting Use the following…
A: The accounting equation states that the transactions of the business effect the two or more accounts…
Q: Required information [The following information applies to the questions displayed below.] Carlberg…
A: The average cost per unit is calculated as total cost divided by number of units produced. The…
Q: Mauro Products distributes a single product, a woven basket whose selling price is $19 per unit and…
A: Break Even Point (BEP) :— It is the point where total cost is equal to total revenue. At this point,…
Q: Requirements: Complete the Ending Inventory and Cost of Goods Sold schedules for each inventory…
A: Cost of goods Sold The cost of the inventory that a business sells within a given time period is…
Q: Item10 Time Remaining 25 minutes 39 seconds 00:25:39 eBook Check my workCheck My Work button…
A: The part of your overall income that the IRS considers taxable is known as taxable income. Both…
Q: It has been suggested that published accounting statements should attempt to be relevant,…
A: Relevance: Accounting statements should provide information that is useful in making decisions. This…
Q: Please provide journal entries for the below situation, including payment of bill.
A: Given in the question: Security deposit has been deposited on the January 1, 2022 for the utilities…
Q: Mark’s Consulting experienced the following transactions for Year 1, its first year of operations,…
A: Statement of cash flow: It implies to one of the financial statements of the company that shows all…
Q: L Which statement is correct in comparing capital leases to operating leases? a) A capital lease…
A: ANSWER:- Correct option (d) d) A capital lease will have a higher debt-to-equity ratio compared to…
Q: 1. What is the current Ratio assuming company A has the following data in its balance sheet?…
A: Hi student Since there are multiple questions, we will answer only first question. Ratio analysis…
Q: In no less than 50 words, discuss the benefits and shortcomings of ratio analysis. How are they best…
A: Ratio analysis is a powerful tool for measuring the financial performance of a company. It can be…
Q: transaction price be allocated.
A: The transaction price is actually the amount to which a firm expects to be entitled for transferring…
Q: BNW Inc. had a weekly payroll of $11,000 for three employees with mandatory withholdings of social…
A: The process for initially recording business transactions in the books of accounts is known as a…
Q: Best Bicycles manufactures three different types of bikes: the Tiny Tike, the Adult Aero, and the…
A: Process capacity refers to the technique which states the operators or machines capabilities in the…
Q: Blue Equipment Repair began operating in September 2022. It prepares financial statements at the end…
A: The revenue, costs, profits, and losses incurred by the business organizations over a specific time…
Q: Use the following information in the adjusted trial balance for D-Cole Company to answer the…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Net income…
Q: (a) Prepare T accounts and enter the opening balances. (This has been done for you on the template.)…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: On March 1, 2021, Gold Examiner receives $164,000 from a local bank and promises to deliver 100…
A: A journal entry records a business transaction in the accounting system of an organisation. Journal…
Q: Account Balances as of December 31, Year 2 Accounts receivable Accounts payable Salaries payable…
A: Closing entries are those which are reported in the books in order to close the temporary accounts…
Q: The lower the revenue per employee, a. the more efficient the company is in generating revenue from…
A: Revenue per employee is the average money the employees generated for the store. It is the…
Q: Purpose of Costing Methods in Management Accounting.
A: Costing Method A costing is a method of calculating the price of goods or services. Different…
Q: Req 1 Req 2A to 20 Req 3 Semiannual Period-End Req 4 Prepare the first two years of a straight-line…
A: Lets understand the basics. Amortizaion of premium or discount on issue of bonds done using either…
Q: This year Southfork began work on a senior center to hold activities for its growing senior citizen…
A: INTRODUCTION: A Journal Entry is just a summary of the debits and credits of the transaction…
Q: equired: The adjustments to the ledger accounts for rent and business rates for the year to 31…
A: Given in the question: Accrued rent as on August 31, 2015 = 400 The prepaid business rates = 300 It…
Q: What amount will reduce the amount due on an invoice of $2072.19 by $1220.41 if the terms of the…
A: A discount, whether expressed in terms of money or as a percentage, is a reduction in the regular…
Q: F is employed by a public corporation. In year 1, F was granted a stock option to acquire 4,000…
A: In almost every nation on earth, governments impose taxes as mandatory fees on people or things.…
Q: An internal service fund normally uses which of the following budgetary accounts? Multiple…
A: The correct option is "Appropriations" because an internal service fund typically uses…
Q: 2. What are the main procedures used by an auditor when performing review or moderate assurance…
A: Moderate assurance is the assurance that is provided on the engagement of review of financial…
Q: Income Statement Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts…
A: Total Manufacturing Cost = Direct Material + Direct Labour + Factory Overheads Cost of Goods…
Q: F earned $130,000 of employment income in the current year. His employer withheld CPP and EI…
A: Federal tax is the liability owed by taxpayers to the federal government on the income earned by the…
Q: Exercise 6-20 (Static) Transaction analysis-various accounts LO 3, 4, 6, 8 For each of the following…
A: Accounting Equation: Assets=Liabilities+Equity
Q: [The following information applies to the questions displayed below.] Listed here are the costs…
A: The manufacturing cost complex direct and indirect costs incurred for the production. The indirect…
Q: Required 1 Required 2 Prepare journal entries to record the first subsequent cash transaction in…
A: Journal entries is a tool for recording business transactions into accounting records.
Q: Maxell Company uses a periodic inventory system. Consider the following information: Date January 1…
A: Inventory is valued on the basis of different inventory valuation methods such as LIFO, FIFO, or…
Q: Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $…
A: Solution 3: Required changes in Deferred tax liability / Assets = Ending balances required -…
Q: Missing Amounts from Balance Sheet and Income Statement Data One item is omitted in each of the…
A: The accounting equation is written as assets equal to sum of liabilities and equity. The equity…
Q: When adjusting for depreciation on a building, which of the following is one effect of the…
A: The accounting method of depreciation can be used to stretch out the expense of a tangible object…
Q: ob 007 requires $10,000 of direct materials, $4,000 of direct labor, 400 tons of material, 200…
A: Cost of a job is the total cost incurred in the production of a job which includes direct materials…
Q: 1. Shown below are the account balances for Barnie Corp. for their year-end December 31, 2022: $…
A: Lets understand the basics. There various stages through which statement of financial position gets…
Q: Owner Shirl Low is considering franchising her Noodles by Low restaurant concept. She believes…
A: The contribution margin ratio is the percentage difference between a company's revenue and variable…
Q: Company EJ plans to build a new plant to manufacture bicycles. EJ sells its bicycles in the world…
A: Lets understand the basics. When entity is having more than one alternatives available then…
Q: Criselda Company has provided detail on a variety c • Factory supplies: $9,100 • Administrative…
A: The period costs are those costs the capital of which is not possible in any kind of assets (like…
Q: Instructions: Statement of Changes in Owner's Equity Balance Sheet
A: The weighted average number of shares is the sum average of the proportion of shares from the total…
Q: For the Year Ended December 31, 2023 Net sales $132,000 Cost of goods sold 78,000 Gross profit…
A: The cash flow statement is prepared to record the cash flow from various activities of the business.…
Q: calculate prime cost from the following Stock of raw material on 1st January, 2020 Rs 40,000 Stock…
A: Prime cost: Prime cost includes direct expenses related to the Manufacturing of goods. Major…
Q: Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $…
A: Solution 5: Required changes in Deferred tax liability / Assets = Ending balances required -…
Q: Exercise no. 2 During the first part of the current year, Luzon Inc. begins a branch operation in…
A: ANSWER: Please fallow the answer below: All business transactions are recorded in journal entries.…
do not give solution in image
Step by step
Solved in 3 steps
- Timberly Construction makes a lump - sum purchase of several assets on January 1 at a total cash price of $810,000. The estimated market values of the purchased assets are building, $ 487,600; land, $285,200; land improvements, $73,600; and four vehicles, $73,600. Allocate the lump - sum purchase price to the separate assets purchased. Prepare the journal entry to record the purchase. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31, 000 salvage value. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double - declining - balance depreciation.[The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $810,000. The estimated market values of the purchased assets are building, $467,950; land, $257,850; land improvements, $47,750; and four vehicles, $181,450. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Total cost of Acquisition Allocation of total cost…Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $820,000. The estimated market values of the purchased assets are building, $547,250, land, $308,450, land improvements, $29,850, and four vehicles, $109,450. 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $29,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.
- Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $900,000. The estimated market values of the purchased assets are building, $508,800; land, $297,600; land improvements, $28,800; and four vehicles, $124,800. Required 1. Allocate the lump-sum purchase price to the separate assets purchased. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $27,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Analysis Component 4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less total taxes over the asset’s life?[The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $840,000. The estimated market values of the purchased assets are building, $432,400; land, $282,000; land improvements, $37,600; and four vehicles, $188,000. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required 3 Allocate the lump-sum purchase price to the separate assets purchased. Allocation of total cost Building Land Land…Nagy Company makes a lump-sum purchase of several assets on January 1 at a total cash price of $1,800,000. The estimated market values of the purchased assets are building, $890,000; land, $427,200; land improvements, $249,200; and five trucks, $213,600. Required 1. Allocate the lump-sum purchase price to the separate assets purchased. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 12-year life and a $120,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a 10-year life and double-declining-balance depreciation. Analysis Component 4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less total taxes over the asset’s life?
- Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $499,800; land, $284,200; land improvements, $29,400; and four vehicles, $166,600. Required:1-a. Allocate the lump-sum purchase price to the separate assets purchased.1-b. Prepare the journal entry to record the purchase.2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value.3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.Accounting Sleepy Ltd negotiated a purchase of land, building and equipment from Bambi Corp. The purchase was completed on June 28, 2021 at a total cash cost of $800,000. The estimated market value of each asset at the time was: land, $330,000; building, $520,000; and machinery, $150,000. Required: 1. Prepare journal entries to record each of the purchase of the assets on June 28, 2021. 2. How much depreciation will be recorded for the December 31, 2021 year end assuming declining balance depreciation years and 5 years on the machinery? Company policy is to start depreciating assets at the beginning of the month following acquisition. on the building over 40Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $820,000. The estimated market values of the purchased assets are building, $527,350; land, $308,450; land improvements, $49,750; and four vehicles, $109,450. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $31,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3 Allocate the lump-sum purchase price to th separate assets purchased. Total cost of Acquisition Allocation of total cost Building Land Land improvements Vehicles Total Estimated Market Value $ 0…
- Timberly Construction makes a lump -sum purchase of several assets on January 1 at a total cash price of $850,000. The estimated market values of the purchased assets are building, $458, 150; land, $317,900; land improvements, $ 65,450; and four vehicles, $93,500. Required: 1-a. Allocate the lump - sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $30,000 salvage value. 3. Compute the first -year depreciation expense on the land improvements assuming a five-year life and double-declining - balance depreciation.Complete this question by entering your answers in the tabs below.Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $514,100; land, $329,800; land improvements, $48,500; and four vehicles, $77,600. Prepare the journal entry to record the purchase.Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $514,100; land, $329,800; land improvements, $48,500; and four vehicles, $77,600. Allocate the lump-sum purchase price to the separate assets purchased.