Below is the problems from my teacher. I am having a hard time understanding the weighted average on the Asset 5, Asset 3 is completely baffling and On asset 1, what i have put down is the only thing that makes sense to me is what I put down. If you could break these processes down Iwould greatly appreciate it. Question 4

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Hayes Industries purchased the following assets and constructed a building as well. All this was done during the current year.

Assets 1 and 2:These assets were purchased as a lump sum for $390,000cash. The following information was gathered.

Description	Initial Cost on Seller?s Books	Depreciation to Date on Seller?s Books	Book Value on Seller?s Books	Appraised Value
Machinery	$390,000	$195,000	$195,000	$351,000
Equipment	234,000	39,000	195,000	117,000

Asset 3:This machine was acquired by making a $39,000down payment and issuing a $117,000, 2-year, zero-interest-bearing note. The note is to be paid off in two $58,500installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $140,010.

Asset 4:This machinery was acquired by trading in used machinery. (The exchange lacks commercial substance.)

Facts concerning the trade-in are as follows.

Cost of machinery traded	$390,000
Accumulated depreciation to date of sale	156,000
Fair value of machinery traded	312,000
Cash received	39,000
Fair value of machinery acquired	273,000

Asset 5

Office equipment was acquired by issuing100shares of $31par value common stock. The stock had a market price of $43per share.

Construction of Building:A building was constructed on land purchased last year at a cost of $585,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows.

Date	Payment
2/1	$468,000
6/1	1,404,000
9/1	1,872,000
11/1	390,000

To finance construction of the building, a $2,340,000,12% construction loan was taken out on February 1. The loan was repaid on November 1. The firm had $780,000of other outstanding debt during the year at a borrowing rate of8%.

Record the acquisition of each of these assets.(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.)

Account Titles and Explanation	Debit	Credit
Acquisition of Assets 1 and 2
Acquisition of Asset 3
Acquisition of Asset 4
Acquisition of Asset 5
(To record acquisition of Office Equipment)