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

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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)
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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.

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

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