3. Nash Company purchased office equipment for $19,200, terms 2/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was: Equipment 19,200 Cash 18,816 Purchase Discounts 384 4. Crane Inc. recently received at zero cost land from the Village of Cardassia as an inducement to locate its business in the Village. The appraised value of the land is $35,10O. The company made no entry to record the land because it had no cost basis. 5. Cheyenne Company built a warehouse for $780,000. It could have purchased the building for $962,000. The controller made the following entry. Buildings 962,000 Cash 780,000 Profit on Construction 182,000 Prepare the entry that should have been made at the date of each acquisition. (Round intermediate calculations to 5 decimal palces, eg. 0.56487 and final answers to 0 decimal places, eg. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts

3. Nash Company purchased office equipment for $19,200, terms 2/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was: Equipment 19,200 Cash 18,816 Purchase Discounts 384 4. Crane Inc. recently received at zero cost land from the Village of Cardassia as an inducement to locate its business in the Village. The appraised value of the land is $35,10O. The company made no entry to record the land because it had no cost basis. 5. Cheyenne Company built a warehouse for $780,000. It could have purchased the building for $962,000. The controller made the following entry. Buildings 962,000 Cash 780,000 Profit on Construction 182,000 Prepare the entry that should have been made at the date of each acquisition. (Round intermediate calculations to 5 decimal palces, eg. 0.56487 and final answers to 0 decimal places, eg. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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on Knight Company made the following acquisitions during the year Purchased for P5,400,000 , excluding appraiser fee of P100,000 , a warehouse building and the land on which it is located The land had an appraised value of P3,000,000 and original cost of 100, 000 . The building had an appraised value of P2,000,000 and original cost of P2,800,000 . Purchased an office building and the land on which it is located for P7,500,000 and assumed an existing P2,500,000 mortgage . For realty tax purposes , the property is assessed at 600, 000 , 60 % of which is allocated to the land . What is the total cost of land ?
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