Presented below is information related to Zonker Company. 1. On July 6, Zonker C

Question

Presented below is information related to Zonker Company. 1. On July 6, Zonker Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land Buildings Equipment $423,810 1,246,500 822,690 $2,493,000 Total Zonker Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a fair value of $180 per share on the date of the purchase of the property. 2. Zonker Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.) $109,900 137,200 124,800 Repairs to building Construction of bases for equipment to be installed later Driveways and parking lots Remodeling of office space in building, including new partitions and walls Special assessment by city on land 163,600 18,400 3. On December 20, the company paid cash for equipment, $289,200, subject to a 1% cash discount, and freight on equipment of $10,790 Prepare entries on the books of Zonker Company for these transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Explanation / Answer

Zonker Company All Amounts in $ 1. Land 423810 Buildings 1003500 Equipment 822690 Common Stock 1250000 Paid-in Capital in Excess 1000000 2. Buildings 273500 Equipment 137200 Land Improvements 124800 Land 18400 Cash 553900 3. Equipment 297098 Cash 297098

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