Below are transactions related to Pronghorn Company. (a) The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this land is determined to be $74,980. (b) 13,000 shares of common stock with a par value of $52 per share are issued in exchange for land and buildings. The property has been appraised at a fair value of $749,800, of which $179,660 has been allocated to land and $570,140 to buildings. The stock of Pronghorn Company is not listed on any exchange, but a block of 100 shares was sold by a stockholder 12 months ago at $67 per share, and a block of 200 shares was sold by another stockholder 18 months ago at $60 per share. (c) No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead the amounts properly chargeable to plant asset accounts for machinery constructed during the year. The following information is given relative to costs of the machinery constructed. Materials used $11,400 Factory supplies used 844 Direct labor incurred 15,460 Additional overhead (over regular) caused by construction ofmachinery, excluding factory supplies used 2,544 Fixed overhead rate applied to regular manufacturing operations 60% of direct labor cost Cost of similar machinery if it had been purchased fromoutside suppliers 41,330 Prepare journal entries on the books of Pronghorn Company to record these transactions. (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.) No. Account Titles and Explanation Debit Credit (a) (b) (c) Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT

Below are transactions related to Pronghorn Company. (a) The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this land is determined to be $74,980. (b) 13,000 shares of common stock with a par value of $52 per share are issued in exchange for land and buildings. The property has been appraised at a fair value of $749,800, of which $179,660 has been allocated to land and $570,140 to buildings. The stock of Pronghorn Company is not listed on any exchange, but a block of 100 shares was sold by a stockholder 12 months ago at $67 per share, and a block of 200 shares was sold by another stockholder 18 months ago at $60 per share. (c) No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead the amounts properly chargeable to plant asset accounts for machinery constructed during the year. The following information is given relative to costs of the machinery constructed. Materials used $11,400 Factory supplies used 844 Direct labor incurred 15,460 Additional overhead (over regular) caused by construction ofmachinery, excluding factory supplies used 2,544 Fixed overhead rate applied to regular manufacturing operations 60% of direct labor cost Cost of similar machinery if it had been purchased fromoutside suppliers 41,330 Prepare journal entries on the books of Pronghorn Company to record these transactions. (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.) No. Account Titles and Explanation Debit Credit (a) (b) (c) Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 1BD

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Below are transactions related to Pronghorn Company.

(a)		The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this land is determined to be $74,980.
(b)		13,000 shares of common stock with a par value of $52 per share are issued in exchange for land and buildings. The property has been appraised at a fair value of $749,800, of which $179,660 has been allocated to land and $570,140 to buildings. The stock of Pronghorn Company is not listed on any exchange, but a block of 100 shares was sold by a stockholder 12 months ago at $67 per share, and a block of 200 shares was sold by another stockholder 18 months ago at $60 per share.
(c)		No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead the amounts properly chargeable to plant asset accounts for machinery constructed during the year. The following information is given relative to costs of the machinery constructed.

Materials used		$11,400
Factory supplies used		844
Direct labor incurred		15,460
Additional overhead (over regular) caused by construction of machinery, excluding factory supplies used		2,544
Fixed overhead rate applied to regular manufacturing operations		60% of direct labor cost
Cost of similar machinery if it had been purchased from outside suppliers		41,330

Prepare journal entries on the books of Pronghorn Company to record these transactions. (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.)

No.	Account Titles and Explanation	Debit	Credit
(a)

(b)



(c)

Click if you would like to Show Work for this question:

Open Show Work

SHOW LIST OF ACCOUNTS

LINK TO TEXT

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