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 $11,400Factory supplies used 844Direct labor incurred 15,460Additional overhead (over regular) caused by construction ofmachinery, excluding factory supplies used 2,544Fixed overhead rate applied to regular manufacturing operations 60% of direct labor costCost of similar machinery if it had been purchased fromoutside suppliers 41,330Prepare 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 ExplanationDebitCredit(a)       (b)               (c)                 Click if you would like to Show Work for this question:Open Show Work  SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO TEXT

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Asked Nov 12, 2019
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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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Step 1

Journal:

 Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system.

 

Step 2

Prepare journal entries on the books of Pronghorn Company...

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Debit (S) Account Title & Explanation Credit Date (S) Land $74,980 а. Contribution Revenue $74,980 b. Land $179,660 Buildings $570,140 $676,000 Common Stock (S52x13,000) Additional Paid-in Capital $73,800 Machinery Materials $39,524 C. $11,400 $15,460 $12,664 Direct Labor Factory Overhead

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