Exercise Prepare the necessary adjusting entries for the following transactions: 1. Alps Co. acquired land, building,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Exercise Prepare the necessary adjusting entries for the following transactions: 1. Alps Co. acquired land, building, and equipment from Bankrupt Inc. for P2,800,000. Bankrupt's assets on acquisition date had the following values: Land Building Equipment Land Building Equipment Cash Alps decided to take a conservative position by recording the lower of the two values for each PPE item acquired. The following entry was made: Book Value P 800,000 1,000,000 1,200,000 Cash Note Payable Interest Payable 600,000 1,000,000 1,200,000 Cash Purchase Discount 2,800,000 2. BIA purchased factory equipment by making a P200,000 cash down payment and signing a 3- year P300,000 10% note payable. The acquisition was recorded as follows: Factory Equipment 530,000 Fair Value P 600,000 1,400,000 1,200,000 200,000 300,000 30,000 3. TIO CO. purchased store equipment for P800,000, 2/10, n/30. TIO took the discount and made the following entry when it paid for the acquisition: Store Equipment 800,000 784,000 16,000 Exercise Prepare the necessary adjusting entries for the following transactions: 1. Alps Co. acquired land, building, and equipment from Bankrupt Inc. for P2,800,000. Bankrupt's assets on acquisition date had the following values: Land Building Equipment Land Building Equipment Cash Alps decided to take a conservative position by recording the lower of the two values for each PPE item acquired. The following entry was made: Book Value P 800,000 1,000,000 1,200,000 Cash Note Payable Interest Payable 600,000 1,000,000 1,200,000 Cash Purchase Discount 2,800,000 2. BIA purchased factory equipment by making a P200,000 cash down payment and signing a 3- year P300,000 10% note payable. The acquisition was recorded as follows: Factory Equipment 530,000 Fair Value P 600,000 1,400,000 1,200,000 200,000 300,000 30,000 3. TIO CO. purchased store equipment for P800,000, 2/10, n/30. TIO took the discount and made the following entry when it paid for the acquisition: Store Equipment 800,000 784,000 16,000
Expert Answer:
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
Students also viewed these accounting questions
-
Prepare journal entries for the following transactions that occurred during January 2014: January 3 Stan Adams opened a landscaping business by investing $60,000 cash and equipment having a $40,000...
-
Prepare journal entries for the following transactions that occurred during July: 201X July 1 Jodi Wills invested $90,000 cash and $11,000 of equipment into her new business. 3 Purchased building for...
-
Prepare journal entries for the following transactions that occurred during March: 201X Mar. 1 Jordan Doxbury invested $50,000 cash and $5,000 of equipment into her new business. 3 Purchased building...
-
Use the Principle of Induction to prove the formula for all natural numbers \(n\). \(1+2+3+\cdots+n=\frac{n(n+1)}{2}\)
-
A 30-mm thick AISI 1020 steel plate is sandwiched between two 10-mm thick 2024-T3 aluminum plates and compressed with a bolt and nut with no washers. The bolt is M10 1.5, property class 5.8. (a)...
-
The demand function for peanut butter is while that for a second commodity is Is the second commodity more likely to be jelly or bread? Explain. D(P, P2) = 800 0.03p-0.04p2
-
The following information is taken from the trial balance of Petras Pedicure Parlour. Required (a) Given that the cost of the inventory on 30 June 2026 is \($25\) 300, prepare the closing entries on...
-
Kale Wilson, an auditor with Sneed CPAs, is performing a review of Platinum Company's inventory account. Platinum did not have a good year, and top management is under pressure to boost reported...
-
1. 20 The full symbols of atoms of elements R, T, X, Y and Z are 2R, 31, 30, 34X, and 5Z respectively 15 15 164, Which one of the following is an isotope of Y A. R B. T C. X D. Z 2. The electronic...
-
Redang Chalet Sdn Bhd (RCSB) rents out chalet to tourists at a popular beach in Redang, Terengganu. RCSB own 10 chalets, in which the construction cost amounted to RM1 million. Each chalet is...
-
The physical stock is $600,000 The book stock is $625,000. Is this an overage or a shortage?
-
Describe what happens if you try to execute UseArgument with each of the following command lines: a. java UseArgument java b. java UseArgument @!&^% c. java UseArgument 1234 d. java UseArgument.java...
-
Identify major ethical challenges managers face at each stage of the value chain.
-
Write a code fragment that reverses the order of the values in a onedimensional string array. Do not create another array to hold the result. Hint : Use the code in the text for exchanging the values...
-
Chaos. Write a program to study the following simple model for population growth, which might be applied to study fish in a pond, bacteria in a test tube, or any of a host of similar situations. We...
-
Suppose that a and b are boolean variables. Show that the expression (!(a && b) && (a || b)) || ((a && b) || !(a || b)) evaluates to true.
-
What is the average interest rate according to simple interest rate method if there were following interest rates in the sub-periods: 4.6% for 9 months, 5.8% for the next 6 months, 6.2% for the next...
-
Compare and contrast debt financing and equity financing as ways of starting a new business. Does one have an overall advantage over the other? What situation is more favorable to the use of debt...
-
On January 1, 2014, Hillock Brewing Company sold 50,000 bottles of beer to various customers for $45,000 using credit terms of 3y10, ny30. These credit terms mean that customers receive a cash...
-
AgriPro, a farm corporation, produced 20,000 bushels of corn in its first year of operations. During the year, it sold 15,000 bushels of the corn produced for $3.00 per bushel and collected 80% of...
-
SMALL FIRMS LOOK TO DERIVATIVES TRADING TO MANAGE COSTS Karl Fowler isnt a traditional publisher. His books, which chronicle major sporting events and teams, can weigh more than 90 pounds and go for...
-
What is a key function of credit-rating agencies? Do credit-rating agencies always provide reliable information? What was the role of credit-rating agencies in the sub-prime crisis of 2008?
-
Assuming the expectations theory is the correct theory of the term structure, calculate the interest rates in the term structure for maturities of one to four years, and plot the resulting yield...
-
Magee Corporation provided the following summary balance sheet information: Compute net income for the year ending December 31, 20X2, under each of the following independent scenarios: (a) Magee paid...
Study smarter with the SolutionInn App