Dhapa On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $566,600 for real estate plus $30,700 cash in closing costs.The real estate included land appraised at $176,030; land improvements appraised at $84,980; and a building appraised at $345,990.(b)PPE Asset(a)AppraisedValues(c)Ratio of Individual Appraised Value to(a) Total Appraised ValueCost Allocation(b) Total ActualCostTotal Appraised ValuePresent the journal entry to record the purchase. (Do not round intermediate calculations. Round the final answers to the nearestwhole dollar.)View transaction listJournal entry worksheet< 1Record the costs of lump-sum purchase.Note: Enter debits before credits.DateApril 12, 2023General JournalDebitCredit

COST ALLOCATIONWhen item of cost are Identifiable directly with some products or departments such…

On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $566,600 for real estate plus $30,700 cash in closing costs. The real estate included land appraised at $176,030; land improvements appraised at $84,980; and a building appraised at $345,990. (b) PPE Asset (a) Appraised Values (c) Ratio of Individual Appraised Value to Cost Allocation Total Appraised Value (a) Total Appraised Value (b) Total Actual Cost Present the journal entry to record the purchase. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 Record the costs of lump-sum purchase. Note: Enter debits before credits. Date April 12, 2023 General Journal Debit Credit >

On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $566,600 for real estate plus $30,700 cash in closing costs. The real estate included land appraised at $176,030; land improvements appraised at $84,980; and a building appraised at $345,990. (b) PPE Asset (a) Appraised Values (c) Ratio of Individual Appraised Value to Cost Allocation Total Appraised Value (a) Total Appraised Value (b) Total Actual Cost Present the journal entry to record the purchase. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 Record the costs of lump-sum purchase. Note: Enter debits before credits. Date April 12, 2023 General Journal Debit Credit >

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2EA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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Johnson, Incorporated, had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for extraordinary repairs Depreciation expense recorded for the year is $15,000. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Johnsons balance sheet resulting from this years transactions? What amount did Johnson report on the income statement for expenses for the year?
Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?
On December 31, 2018 Change Co. showed the following account balances in his general ledger: Land $330,000 Building and plant facilities 990,000 Machinery and equipment 975,000 During 2019, the following transactions occurred. 1. Land site A was acquired for $650,000 plus legal fees on closing of $40,000. 2. Land site B, with a building, was acquired for $720,000. The closing statement indicated that the land value was $500,000 and the building value was $300,000. Shortly after acquisition, the building was removed and sold to a third party for $50,000. A new building was constructed for $460,000, plus the following costs: Architectural design fees $45,000 Excavation fees 58,000 Imputed interest on company funds 25,000 The imputed interest represents the amount of interest that the company would have paid if it had borrowed money to construct the building. The building was completed and occupied at the end of November 2019. 3. A group of machines was purchased under a royalty agreement…
At the beginning of the current year, EZE Company reported land P3,200,000 and building P7,500,000. During the current year, the following transactions occurred: A piece of land was acquired for P1,600,000. To be able to acquire the land, P200,000 was paid to a real estate agent, and P100,000 was incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P75,000 A second piece of land with a building was acquired for P5,400,000. The appraiser valued the land at P2,000,000 and the building at P1,000,000. Shortly after acquisition, the building was demolished at a cost of P100,000. A new building was constructed at a cost of P5,000,000 plus excavation fee P80,000, architect fee P120,000 and building permit P70,000. A third piece of land was acquired for P2,000,000 and was held for undetermined use. What total cost of land should be reported under property, plant and equipment? Group of answer choices 10,625,000…
At the beginning of the current year, EZE Company reported land P3,200,000 and building P7,500,000. During the current year, the following transactions occurred: A piece of land was acquired for P1,600,000. To be able to acquire the land, P200,000 was paid to a real estate agent, and P100,000 was incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P75,000 A second piece of land with a building was acquired for P5,400,000. The appraiser valued the land at P2,000,000 and the building at P1,000,000. Shortly after acquisition, the building was demolished at a cost of P100,000. A new building was constructed at a cost of P5,000,000 plus excavation fee P80,000, architect fee P120,000 and building permit P70,000. A third piece of land was acquired for P2,000,000 and was held for undetermined use. What is the total cost of the building? Group of answer choices 14,670,000 14,570,000 12,870,000 12,770,000
Tristar Production Company began operations on September 1, 2024. Listed below are a number of transactions that occurred during its first four months of operations. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $200,000 in cash for the property. According to appraisals, the land had a fair value of $134,200 and the building had a fair value of $85,800. On September 1, Tristar signed a $50,000 noninterest-bearing note to purchase equipment. The $50,000 payment is due on September 1, 2025. Assume that 8% is a reasonable interest rate. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,500. On September 18, the company paid its lawyer $8,000 for organizing the corporation. On October 10, Tristar purchased equipment for cash. The purchase price was $25,000 and $1,000 in freight charges also were paid. On December 2, Tristar acquired equipment. The company was short of cash…
At December 31, 2018, certain accounts included in the property, plant, and equipment section of Townsand Company's balance sheet had the following balances: Land $100,000 Buildings 800,000 Leasehold improvements 500,000 Machinery and equipment 700,000 During 2019, the following transactions occurred: Land site number 621 was acquired for $1,000,000. Additionally, to acquire the land, Townsand paid a $60,000 commission to a real estate agent. Costs of $15,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $5,000. A second tract of land (site number 622) with a building was acquired for $300,000. The closing statement indicated that the land value was $200,000 and the building value was $100,000. Shortly after acquisition, the building was demolished at a cost of $30,000. A new building was constructed for $150,000 plus the following costs: Excavation fees $11,000 Architectural design…
Jada Company had the following transactions during the year: Purchased a machine for $430,000 using a long-term note to finance it. Paid $520 for ordinary repair. Purchased a patent for $42,000 cash. Paid $200,000 cash for addition to an existing building. Paid $51,000 for monthly salaries. Paid $280 for routine maintenance on equipment. Paid $10,000 for major repairs. Depreciation expense recorded for the year is $30,000. A. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jada’s balance sheet resulting from this year’s transactions? $fill in the blank 1 B. What amount did Jada report on the income statement for expenses for the year? $fill in the blank 2 Feedback
Jada Company had the following transactions during the year: Purchased a machine for $440,000 using a long-term note to finance it. Paid $460 for ordinary repair. Purchased a patent for $48,000 cash. Paid $160,000 cash for addition to an existing building. Paid $52,000 for monthly salaries. Paid $240 for routine maintenance on equipment. Paid $10,000 for major repairs. Depreciation expense recorded for the year is $20,000. A) If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jada’s balance sheet resulting from this year’s transactions? B) What amount did Jada report on the income statement for expenses for the year?
Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it. Paid $550 for ordinary repair. Purchased a patent for $44,000 cash. Paid $180,000 cash for addition to an existing building. Paid $50,000 for monthly salaries. Paid $260 for routine maintenance on equipment. Paid $10,000 for major repairs. Depreciation expense recorded for the year is $25,000. A. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jada’s balance sheet resulting from this year’s transactions? $fill in the blank 1 B. What amount did Jada report on the income statement for expenses for the year? $fill in the blank 2
On July 1, 2022, BTS Company purchased a machinery from a dealer paying P2,310,000 cash. In addition, a P150,000 transaction cost was incurred to bring the machinery in the company’s premises. Using the conceptual framework, how much is the historical cost of the machinery?
Selected accounts included in the property, plant, and equipment section of Splish Corporation’s balance sheet at December 31, 2019, had the following balances. Land $378,000 Land improvements 176,400 Buildings 1,386,000 Equipment 1,209,600 During 2020, the following transactions occurred. 1. A tract of land was acquired for $189,000 as a potential future building site. 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 25,200 shares of Splish’s common stock. On the acquisition date, Splish’s stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendota’s books at $138,600 for land and $403,200 for the building at the exchange date. Current appraised values for the land and building, respectively, are $289,800 and $869,400. 3. Items of machinery and equipment were purchased at a total cost of $504,000. Additional costs were incurred as…