A company biu A company biu Part B (Ch. 7-9) Saved Help Save&Exit; Rodriguez Com

Question

A company biu A company biu Part B (Ch. 7-9) Saved Help Save&Exit; Rodriguez Company pays $335,000 for real estate plus $17755 in closing costs. The real estate consists of land appraised at $235,000; land improvements appraised at $70,500, and a building appralsed at $164500. Required: 1. Allocate the total cost among the three purchased assets 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record the purchase. (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Record the costs of lump-sum purchase. Note: Enter debits before credits. Prev 1 of 14 Next >

Explanation / Answer

1 Appraised Value % of Total appraised value X Total cost of acquisition = Apportioned cost Land $        2,35,000.00 50% X $    3,52,755.00 = $ 1,76,377.50 Land improvements $           70,500.00 15% X $    3,52,755.00 = $     52,913.25 Buildings $        1,64,500.00 35% X $    3,52,755.00 = $ 1,23,464.25 Totals $        4,70,000.00 $ 3,52,755.00 For % of Total appraised value = Take the cost and divide it by total value i.e $2,35,000/$4,70,000 X 100 = 50% Calculation of Total cost of Acquisition: Purchase price = $ 3,35,000.00 Add: Closing cost = $    17,755.00 Total cost of acquisition = $ 3,52,755.00 2 Account Titles and Explainations Debit Credit Land $        1,76,377.50 Land improvements $           52,913.25 Buildings $        1,23,464.25 Cash $ 3,52,755.00

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