nnect C Secure https://newconnect.mheducation.com/flow/connect.html CHAPTER 8 HO
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nnect C Secure https://newconnect.mheducation.com/flow/connect.html CHAPTER 8 HOMEWORK 6 Help Sav Saved 2 Rodriguez Company pays $345,000 for real estate plus $18.285 in closing costs. The real estate consists of land appraised at $260,000; land improvements appraised at $78,000; and a building appraised at $182.000. 10 points Required 1. Allocate the total cost among the three purchased assets. 2. Prepare the journal entry to record the purchase eBook Complete this question by entering your answers in the tabs belovw Hint Print References Required 1 Required 2 Prepare the journal entry to record the purchase. (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Record the costs of lump-sum purchase. Note: Enter debits before credits GrawExplanation / Answer
Answer:
a) Statement showing allocation of the total cost among the three purchase assets:
Calculation of % Appraised Value :
Particular
Appraised Value
%of Total Value Appraised
($)
Land
2,60,000.00
50.00%
(2,60,000/5,20,000*100)
Land Improvement
78,000.00
15.00%
(78,000/5,20,000*100)
Building
1,82,000.00
35.00%
(1,82,000/5,20,000*100)
Total
5,20,000.00
100%
Total cost of acquisition =
Purchase Price + Closing Cost
$ 345,000 + $ 18,285
$3,63,285
Calculation of total Cost:
Particular
%of Total Value Appraised
Total Cost of Acquisition
Apportioned Cost
(A)
(B) ($)
(A X B)
Land
50.00%
3,63,285.00
1,81,642.50
Land Improvement
15.00%
3,63,285.00
54,492.75
Building
35.00%
3,63,285.00
1,27,149.75
Total cost
3,63,285.00
b) Journal Entry for to record the purchase:
Particular
Amount
Amount
Land
Dr
1,81,642.50
Land Improvement
Dr
54,492.75
Building
Dr
1,27,149.75
Cash
Cr
3,63,285.00
Answer:
a) Statement showing allocation of the total cost among the three purchase assets:
Calculation of % Appraised Value :
Particular
Appraised Value
%of Total Value Appraised
($)
Land
2,60,000.00
50.00%
(2,60,000/5,20,000*100)
Land Improvement
78,000.00
15.00%
(78,000/5,20,000*100)
Building
1,82,000.00
35.00%
(1,82,000/5,20,000*100)
Total
5,20,000.00
100%
Total cost of acquisition =
Purchase Price + Closing Cost
=$ 345,000 + $ 18,285
=$3,63,285
Calculation of total Cost:
Particular
%of Total Value Appraised
Total Cost of Acquisition
Apportioned Cost
(A)
(B) ($)
(A X B)
Land
50.00%
3,63,285.00
1,81,642.50
Land Improvement
15.00%
3,63,285.00
54,492.75
Building
35.00%
3,63,285.00
1,27,149.75
Total cost
3,63,285.00
b) Journal Entry for to record the purchase:
Particular
Amount
Amount
Land
Dr
1,81,642.50
Land Improvement
Dr
54,492.75
Building
Dr
1,27,149.75
Cash
Cr
3,63,285.00
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