Presented below is information related to Monday Company. 1. On July 6 Monday Company acquired the plant

Question:

Presented below is information related to Monday Company.
1. On July 6 Monday Company acquired the plant assets of Weld Company, which had discontinued operations. The appraised value of the property is:
Land.................$ 200,000
Building..............600,000
Machinery and equipment.......400,000
Total..............$1,200,000
Monday Company gave 12,500 shares of its $10 par value common stock in exchange. The stock had a market value of $84 per share on the date of the purchase of the property.
2. Monday Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building.
Repairs to building .........................$ 73,000
Construction of bases for machinery to be installed later ..............17,000
Driveways and parking lots .......................88,000
Remodeling of office space in building, including new partitions and walls ..184,000
Special assessment by city on land ....................19,000
3. On December 20, the company paid cash for machinery, $170,000, subject to a 3% cash discount, and freight on machinery of $8,000.

Instructions
Prepare entries on the books of Monday Company for these transactions.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1118147290

15th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

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