Ask Experts Questions for FREE Help !
Ask
    gethelp12's Avatar
    gethelp12 Posts: 1, Reputation: 1
    New Member
     
    #1

    Oct 28, 2012, 04:15 PM
    entries for acquistion assets
    1.On July 6 Rommel Company acquired the plant assets of Studebaker Company, which had discontinued operations. The appraised value of the property is:





    Land

    $400,000





    Building

    1,200,000





    Machinery and equipment


    800,000





    Total


    $2,400,000



    Rommel Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a fair value of $180 per share on the date of the purchase of the property.


    2.Rommel Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building.





    Repairs to building

    $105,000





    Construction of bases for machinery to be installed later

    135,000





    Driveways and parking lots

    122,000





    Remodeling of office space in building, including new partitions and walls

    161,000





    Special assessment by city on land

    18,000



    3.On December 20, the company paid cash for machinery, $280,000, subject to a 2% cash discount, and freight on machinery of $10,500.

    Prepare entries on the books of Rommel Company for these transactions.

Check out some similar questions!

If no adjusting entries, assets, liab, equity be higher or lower? [ 1 Answers ]

1. On December 20, 2013, Jamesway received a $4,000 payment from a customer for services to be rendered early in 2014. Service revenue was credited. 2. On December 1, 2013, the company paid a local radio station $2,000 for 40 radio ads that were to be aired, 20 per month, throughout...

Journal entries for fixed assets sale [ 6 Answers ]

Foster glass company purhcased a fax machine for 1800, salvage value of $300 with useful life of three years. Assume foster uses the doulble-declining balance (DDB) depreciation method. Foster decided to replace its fax machine with a bizhub on July 1,2008. Eagle Outfitters offered to buy...

Determine the amount of total assets, current assets noncurrent assets [ 1 Answers ]

Determine the amount of total assets, current assets, and noncurrent assets at the end of the period, given the following data: Current liability, ending balance $50,000 Current ratio, ending 1:6:1 Owners’ equity, beginning balance $120,000 Inventory, beginning balance $ 35,000 ...

Prepare the necessary journal entries to clear the Intangible Assets account? [ 1 Answers ]

8/1/07 Purchased copyright (8 year life estimated) 160,000 9/1/07 Research and Development Costs 135,000

Is patents ( Intangible assets) added in total assets on balance sheet [ 2 Answers ]

Is the patents (Intangible assest)amount added to the current assets amount on a balance sheet. Help Thanks


View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.