Exercise 10-16 - EXERCISE 10-16 (2535 minutes) Hayes...

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EXERCISE 10-16 (25–35 minutes) Hayes Industries Acquisition of Assets 1 and 2 Use Appraised Values to break-out the lump-sum purchase Description Appraisal Percentage Lump-Sum Value on Books Machinery 90,000 90/120 100,000 75,000 Office Equipment 30,000 30/120 100,000 25,000 120,000 Machinery. ......................................................................... 75,000 Office Equipment . ........................................................... 25,000 Cash. ......................................................................... 100,000 Acquisition of Asset 3 Use the cash price as a basis for recording the asset with a discount recorded on the note. Machinery. ......................................................................... 35,900 Discount on Notes Payable ($40,000 – $35,900). ....... 4,100 Cash. ......................................................................... 10,000 Notes Payable. ....................................................... 30,000 10-29 EXERCISE 10-16 (Continued)
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This note was uploaded on 06/06/2010 for the course ACCOUNTING ac505 taught by Professor Khan during the Spring '10 term at DeVry Fremont.

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Exercise 10-16 - EXERCISE 10-16 (2535 minutes) Hayes...

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