Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 9, Problem 9.18E
Making a lump-sum purchase of assets
Dearwood Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows:
| Lot | Appraised Value |
| 1 | $ 45,000 |
| 2 | 292,500 |
| 3 | 112,500 |
Dearwood paid $435,000 in cash. Record the purchase in the journal, identifying each lot’s cost in a separate Land account. Round decimals to two places, and use the computed percentages throughout.
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Eastwood Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows:
E (Click the icon to view the values.)
Eastwood paid $265,000 in cash. Record the purchase in the journal, identifying each lot's cost in a separate Land account. Round decimals to two places, and use the computed percentages throughout. (Record a
single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
...
Date
Accounts and Explanation
Debit
Credit
Land-Lot 1
Land-Lot 2
Land-Lot 3
Data table
Cash
To record sale of lots.
Lot
Appraised Value
Lot 1
2$
202,500
Lot 2
225,000
Lot 3
22,500
Print
Done
Westwood Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows:
Lot Appraised Value
Lot 1 $132,000
Lot 2 110,000
Lot 3 198,000
Westwood paid $355,000 in cash. Record the purchase in the journal, identifying each lot's cost in a separate Land account. Round decimals to two places, and use the computed percentages throughout. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table. Check your spelling carefully and do not abbreviate.)
Maplewood
Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows:
Lot
Appraised Value
1
$144,000
2
96,000
3
240,000
Maplewood paid $355,000 in cash. Record the purchase in the journal, identifying each lot's cost in a separate Land account. Round decimals to two places, and use the computed percentages throughout. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Date
Accounts and Explanation
Debit
Credit
Chapter 9 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
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