121_07A - Question 1 Record each of the following journal...

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Chapter 7 – Page 1 of 18 Question 1 Record each of the following journal entries. Amounts paid in cash. Account names Debit Credit A Equipment 50,000 Cash 50,000 Invoice price for new equipment, $50,000 B Equipment 1,000 Cash 1,000 Transportation, insurance charges to deliver equip, $1,000 C Equipment 8,000 Cash 8,000 Labor and parts to build platform, install equipment, $8,000 D Equipment 5,000 Cash 5,000 Labor and materials to test equipment, $5,000 E Repairs and maintenance expense 10,000 Cash 10,000 Routine maintenance during first year of operations, $10,000 F Equipment 20,000 Accounts payable 20,000 Modified equipment to extend life, change function, $20,000 Post transactions to T-account below. Equipment 50,000 1,000 8,000 5,000 20,000 84,000 What did you learn?
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Chapter 7 – Page 2 of 18 Question 2 Record each of the following journal entries. Amounts paid in cash. Account names Debit Credit A Truck 30,000 Cash 30,000 Invoice price for delivery truck, $30,000 B Repairs and maintenance expense 200 Cash 200 Regular oil change, tire rotation, fluid replacement, $200 C Truck 2,000 Cash 2,000 Company name, logo, phone number painted on truck $2,000 D Repairs and maintenance expense 800 Cash 800 Scheduled 30,000 mile engine tune-up, $800 E Truck 10,000 Cash 10,000 Rebuilt truck frame so truck can carry heavier load, $10,000 F Repairs and maintenance expense 500 Cash 500 Scheduled replacement of tires, brake pads, $500 Post transactions to T-accounts below. Truck Repairs and maintenance exp. 30,000 200 2,000 800 10,000 500 42,000 1,500 What did you learn?
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Chapter 7 – Page 3 of 18 Question 3 Granite Corporation paid $400,000 to purchase a land, a building, and office furniture from a company going out of business. An independent appraiser made the following estimates of fair market value: land, $250,000; building, $150,000; furniture, $100,000. Calculate the amount allocated to each asset. Asset Est. FMV Ratio Relative % Land 250,000 250,000 / 500,000 = 50% Building 150,000 150,000 / 500,000 = 30% Furniture 100,000 100,000 / 500,000 = 20% Total 500,000 100% Asset Actual cost Relative % Allocated cost Land 400,000 x 50% = 200,000 Building 400,000 x 30% = 120,000 Furniture 400,000 x 20% = 80,000 Total 400,000 Prepare the journal entry to record the purchase. Account names Debit Credit Land 200,000 Building 120,000 Furniture 80,000 Cash 400,000 What did you learn?
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Chapter 7 – Page 4 of 18 Question 4 Slate Corporation paid $800,000 to purchase a building, and equipment and inventory. An appraiser made the following estimates of fair market value: building, $500,000; equipment, $400,000; inventory, $100,000. Calculate the amount allocated to each asset. Asset
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121_07A - Question 1 Record each of the following journal...

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