auisitionsProblem 23-5 (IAA)1. Nutty Company made the following individual cashpurchases:000,000taken.Land and buildingMachinery and officeDelivery equipment6,000,0001,800,000500,000equipmentthe oldlachineAn appraisal disclosed the following fair value:1,000,0003,000,000800,000400,000350,000LandentityonthlychineBuildingMachineryOffice equipmentDelivery equipment2. Nutty Company acquired the assets of another entity withthe following fair value:sed arestThe1,000,0005,000,0002,000,000LandBuildingMachineryThe entity issued 60,000 shares with P100 par value inexchange. The share had a quoted price of P150 on the dateof purchase of the property.ofary3. Received a parcel of land located in Davao City from aphilanthropist as an inducement to locate a plant in thecity. The land has a fair value of P1,500,000.is-4. The entity paid cash for machinery, P900,000 subject to 2%cash discount, and freight on machinery, P35,000.5. The entity acquired furniture and fixtures by issuing aP400,000 two-year noninterest-bearing note. In similartransactions, the entity has paid 12% interest.The present value of 1 at 12% for 2 years is .797, and thepresent value of an annuity of 1 at 12% for 2 years is 1.69.Required:Prepare journal entries to record the transactions.653

Name: auisitionsProblem 23-5 (IAA)1. Nutty Company made the following indiv
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Description: auisitionsProblem 23-5 (IAA)1. Nutty Company made the following individual cashpurchases:000,000taken.Land and buildingMachinery and officeDelivery equipment6,000,0001,800,000500,000equipmentthe oldlachineAn appraisal disclosed the following fair va

Generally accepted accounting principles, or GAAP, require a business to record an exchange of stock…

Answered: Prepare journal entries to record the…

Business

Accounting

Prepare journal entries to record the transactions.

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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1 Nutty Company made the following individuni cash purchases: Land and building Machinery and office equipment Delivery equipment 6,000,000 1,800,000 500,000 An appraisal disclosed the following fair value: Land 1,000,000 3,000,000 Building Machinery Office equipment Delivery equipment 800,000 400,000 350,000 2. Nutty Company nequired the assets of another entity with the following fair value: Land Building Machinery 1,000,000 5,000,000 2,000,000 The entity inaued 60,000 ahares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. 3. Received a parcel of land located in Davao City from a philanthropist as an inducement to locate a plant in the city. The land has a fair value of P1,500,000. 4. The entity paid cash for machinery, P900,000 subject to 2% cash discount, and freight on machinery, P35,000. 5. The entity acquired furniture and fixtures by issuing a P400,000 two-year noninterest-bearing note. In similar transactions, the…
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