Sneathen Company purchased a restaurant building, land, and equipment for $600,000 cash. The appraised value of the

Question:

Sneathen Company purchased a restaurant building, land, and equipment for $600,000 cash. The appraised value of the assets was as follows:

Land ...................$200,000

Building .............. 480,000

Equipment ......... 120,000

Total ..................$800,000

Required

a. Compute the amount to be recorded on the books for each of the assets.

b. Record the purchase in a horizontal statements model like the following one.

c. Prepare the general journal entry to record the purchase.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental financial accounting concepts

ISBN: 978-0078025365

8th edition

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

See More Books

Question Posted: Oct 26, 2013 07:00 AM

See More Questions

Top Up is a levered firm with assets valued at $300,000, has $25,000 of debt issued at 7% interest, and 2,000 shares of stock outstanding. Suppose that corporate profits are subject to a tax rate of...
On January 2, 2019, Frazier Company purchased a restaurant franchise for $85,000. The terms of the franchise agreement allowed Frazier to have exclusive rights to operate a restaurant under the...
The appraised value of a property has increased 233 1/3% since it was purchased by the present owner. The purchase price of the property was $120 000, its appraised value at that time. (a) How much...
The RRR Company has a target current ratio of 2.4. Presently, the current ratio is 3.3 based on current assets of $6,567,000. If RRR expands its inventory using short- term liabilities (maturities...
Refer to the painkiller study of Exercise 7.5.10. In that study, the evidence favoring the drug was marginally significant (0.025 (a) 80% (b) 90% Exercise 7.5.10 A pain-killing drug was tested for...
Kimberly Clark (KC), maker of Scott paper products, decided to hold a managers meeting in Hawaii in February. To take advantage of special fares, KC purchased airline tickets in advance from Alaska...
To investigate the average time to failure of a certain soldered object subject to continuous flow of current, 5 soldered objects were subjected to specified volts and amperes of current and their...
Paige Company estimates that unit sales will be 10,000 in quarter 1, 14,000 in quarter2, 15,000 in quarter 3, and 18,000 in quarter 4. Using a sales price of $70 per unit, prepare the sales budget by...
An auditor randomly samples 20 accounts receivable from among the 500 such accounts of a client's firm. The auditor lists the amount of each account and checks to see if the underlying documents...
In February 2017, Maria Osgood invested an additional $10,000 in her business, Osgoods Pharmacy, which is organized as a proprietorship. Osgoods accountant, Carl Sota, recorded this receipt as an...
Carolina Company purchased a building and the land on which the building is situated for a total cost of $800,000 cash. The land was appraised at $300,000 and the building at $700,000. Required a....
The following events apply to The Ice Cream Parlor for the 2013 fiscal year: 1. The company started when it acquired $20,000 cash from the issue of common stock. 2. Purchased a new ice cream machine...
For the truss in Figure P8.1, compute the horizontal and vertical components of displacement of joint $B$ produced by the 100 -kip load. The area of all bars $=4 \mathrm{in} .^{2}$, and...
What does a suppressor mutation suppress? What is the difference between an intragenic and an intergenic suppressor?
In the CRISPR-Cas system, does the tracrRNA act as a scaffold, guide, ribozyme, blocker, decoy, and/or alterer of protein function or stability?
Describe how HIV DNA is integrated into a chromosome of the host cell.
With regard to pedigree analysis, make a list of observations that distinguish recessive, dominant, and X-linked patterns of inheritance.
Explain the role of RNase H (a component of reverse transcriptase) during the synthesis of HIV DNA.
Draw the Lewis structure for each of the following molecules or ions and give the number of electrons about the central atom: (a) SiO 4 4 ; (b) SCl 2 ; (c) BrF 5 ; (d) ICl 2 .
In each of the following independent cases, document the system using whatever technique(s) your instructor specifies. a. Dreambox Creations (www.dreamboxcreations.com/) in Diamond Bar, California,...
In Figure 4, place point M where there is 100 percent unemployment. Figure 4
Bill's father read that, at the end of each year, an automobile is worth 25% less than it was at the beginning of the year. After a car is three years old, the rate of decline reduces to 15%....
A professor of engineering economics owns a 1996 automobile. In the past 12 months, he has paid $2000 to replace the transmission, bought two new tires for $160, and installed a new tape deck for...
The Ajax Corporation purchased a railroad tank car 8 years ago for $60,000. It is being depreciated by SOYD depreciation , assuming a 10-year depreciable life and a $7000 salvage value . The tank car...
This project requires an investment in fixed assets, at time 0, of 44,000,000. Assets will be depreciated straight line in 5 years. This project has a 4 year life. The revenues for each of the 4...
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year - end, the Work in Process Inventory account shows the following. Work in Process Inventory Date Explanation...
T-bill with a $10,000 par has 174 days until maturity. The T-bill has a bank discount bid quote of 2.208% and ask quote of 2.198%. What is the return on the investment in this T-bill if the trader...

Sneathen Company purchased a restaurant building, land, and equipment for $600,000 cash. The appraised value of the

Question:

Step by Step Answer:

a Asset Appraised Value Percent of Appraised Value La...View the full answer

Fundamental financial accounting concepts

Students also viewed these Accounting questions