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Act 2180 - Homework Assignment #2 Form in which you will be graded on: Follow instructions. Points will be deducted for unprofessional appearance....

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Act 2180 – Homework Assignment #2 Form in which you will be graded on: This assignment is worth a total of 20 points: 1. Follow instructions. Points will be deducted for unprofessional appearance. 2. Homework is to be submitted before your class is scheduled to begin . No exceptions. 3. Must show all work - Missing calculations will result in loss of points! **If completing assignment in Excel, show all calculations on the side or underneath problem. 4. Homework solutions must be typed – hand written assignments will not be accepted. See syllabus for additional details.
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Act 2180 – Homework Assignment #2 Leelanau Production Company began operations on September 1, 2016. Listed below are a number of transactions that occurred during its Frst four months of operations. 1. On September 1, the company acquired Fve acres of land with a building that will be used as a storage facility. Leelanau paid $120,000 in cash for the property. According to appraisals, the land had a fair value of $95,000 and the building had a fair value of $65,000. 2. On September 1, Leelanau signed a $40,000 noninterest-bearing note to purchase equipment. The $40,000 payment is due on September 1, 2019. Assume that 8% is a reasonable interest rate. 3. On November 15, a truck was donated to the corporation. Similar trucks were selling for $4,500. 4. On November 18, the company paid its lawyer $3,000 for organizing the corporation. 5. On October 10, Leelanau purchased equipment for cash. The purchase price was $15,000 and $500 in freight charges & $200 in insurance during transit also were paid. 6. On December 2, Leelanau acquired various items of o±ce equipment. The company was short of cash and could not pay the $7,500 normal cash price. The supplier agreed to accept 200 shares of the company's no par common stock in exchange for the equipment. The fair value of the stock is not readily determinable. 7. On December 1, the company acquired a building at a cost of $20,000. It paid $2,000 down and signed a 10% note with both principal and interest due in one year. Ten percent is an appropriate rate of interest for this note. (1) Prepare the journal entries necessary to record the above transactions (5 points)
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Act 2180 – Homework Assignment #2 Form in which you will be graded on:
This assignment is worth a total of 20 points:
1. Follow instructions. Points will be deducted for unprofessional...

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