Presented below is information related to Tamarisk Company. 1. On July 6, Tamarisk Company acquired the...

Transcribed Image Text:

Presented below is information related to Tamarisk Company. 1. On July 6, Tamarisk Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land $400,000 Buildings 1,200,000 E Equipment 800,000 Total $2,400,000 Tamarisk Company gave 12,200 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the purchase of the property. 2. Tamarisk Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.) Repairs to building $73,500 Construction of bases for equipment to be installed later 94,500 Driveways and parking lots 85,400 Remodeling of office space in building, including new partitions and walls 112,700 Special assessment by city on land 12,600 3. On December 20, the company paid cash for equipment, $182,000, subject to a 2% cash discount, and freight on equipment of $7,350. Prepare entries on the books of Tamarisk Company for these transactions. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. 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.) Presented below is information related to Tamarisk Company. 1. On July 6, Tamarisk Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land $400,000 Buildings 1,200,000 E Equipment 800,000 Total $2,400,000 Tamarisk Company gave 12,200 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the purchase of the property. 2. Tamarisk Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.) Repairs to building $73,500 Construction of bases for equipment to be installed later 94,500 Driveways and parking lots 85,400 Remodeling of office space in building, including new partitions and walls 112,700 Special assessment by city on land 12,600 3. On December 20, the company paid cash for equipment, $182,000, subject to a 2% cash discount, and freight on equipment of $7,350. Prepare entries on the books of Tamarisk Company for these transactions. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. 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.)

Answer rating: 100% (QA)

Answer Journal Entry Date Account Title Explanation Building Equiptment Common stock Additional P... View the full answer