chapter 10 key

# Chapter 10 key - Chapter 10 Exercise 10-1(15 minutes Invoice price of machine \$ Less discount.02 x \$12,500 Net purchase price Freight

This preview shows pages 1–2. Sign up to view the full content.

Exercise 10-1 (15 minutes) Invoice price of machine. ........................................ \$ 12,500 Less discount (.02 x \$12,500). ................................ (250 ) Net purchase price. ................................................. 12,250 Freight charges (transportation-in). ...................... 360 Mounting and power connections. ........................ 895 Assembly. ................................................................. 475 Materials used in adjusting. ................................... 40 Total cost to be recorded. ....................................... \$ 14,020 Exercise 10-3 (20 minutes) Purchase price. ........................................................ \$375,280 Closing costs. ........................................................... 20,100 Total cost of acquisition. ......................................... \$395,380 Allocation of total cost Appraised Value Percent of Total Applying % to Cost Apportioned Cost Land. ......................... \$157,040 40% \$395,380 x .40 \$158,152 Land improvements. 58,890 15 \$395,380 x .15 59,307 Building. ................... 176,670 45 \$395,380 x .45 177,921 Totals. ....................... \$392,600 100 % \$395,380 Journal entry Land. .................................................................... 158,152 Land Improvements. .......................................... 59,307 Building. .............................................................. 177,921 Cash. ............................................................ 395,380 To record costs of lump-sum purchase. Exercise 10-5 (15 minutes)

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 07/11/2011 for the course ECON 101 taught by Professor D during the Fall '11 term at Troy Dothan.

### Page1 / 4

Chapter 10 key - Chapter 10 Exercise 10-1(15 minutes Invoice price of machine \$ Less discount.02 x \$12,500 Net purchase price Freight

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online