Plant acquisitions for selected companies are as follows. 1. Sheffield Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $938,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values Appraisal Values Land $268,000 $201,000 Buildings 335,000 469,000 Equipment 402,000 402,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 201,000 Buildings 335,000 Equipment 402,000 Cash 938,000 2. Tamarisk Enterprises purchased store equipment by making a $2,680 cash down payment and signing a 1-year, $30,820, 10% note payable. The purchase was recorded as follows. Equipment 36,582

Plant acquisitions for selected companies are as follows. 1. Sheffield Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $938,000. At the time of purchase, Torres's assets had the following book and appraisal values. Book Values Appraisal Values Land $268,000 $201,000 Buildings 335,000 469,000 Equipment 402,000 402,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 201,000 Buildings 335,000 Equipment 402,000 Cash 938,000 2. Tamarisk Enterprises purchased store equipment by making a $2,680 cash down payment and signing a 1-year, $30,820, 10% note payable. The purchase was recorded as follows. Equipment 36,582

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds...

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During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds issued by Makenzie Inc. b. Acquired land valued at 105,000 in exchange for machinery. c. Sold equipment with original cost of 810,000 for 495,000; accumulated depreciation taken on the equipment to the point of sale was 270,000. d. Purchased new machinery for 180,000. e. Purchased common stock in Lemmons Company for 82,500. Required: 1. Prepare the net cash from investing activities section of the statement of cash flows. 2. CONCEPTUAL CONNECTION Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision?
On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.
Plant acquisitions for selected companies are as follows: 1. Cullumber Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $692,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $219,000 $144,000 Buildings 244,000 351,000 Equipment 304,000 304,000 Cullumber Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 144,000 Buildings 244,000 Equipment 304,000 Cash 692,000 Cullumber Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 19% of the cost of the building. Because of the unique design and materials needed to replace the roof,…
Plant acquisitions for selected companies are as follows: 1. Cullumber Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $692,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $219,000 $144,000 Buildings 244,000 351,000 Equipment 304,000 304,000 Cullumber Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 144,000 Buildings 244,000 Equipment 304,000 Cash 692,000 Cullumber Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 19% of the cost of the building. Because of the unique design and materials needed to replace the roof,…
Plant acquisitions for selected companies are as follows: 1. Sandhill Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $765,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $199,000 $151,000 Buildings 241,000 350,000 Equipment 373,000 373,000 Sandhill Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 151,000 Buildings 241,000 Equipment 373,000 Cash 765,000 Sandhill Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 20% of the cost of the building. Because of the unique…
Plant acquisitions for selected companies are as follows: 1. Sandhill Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $720,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $210,000 $140,000 Buildings 248,000 349,000 Equipment 332,000 332,000 Sandhill Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 140,000 Buildings 248,000 Equipment 332,000 Cash 720,000 Sandhill Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 20% of the cost of the building. Because of the unique design and materials needed to replace the roof, the…
Plant acquisitions for selected companies are as follows.1. Bramble Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $756,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land $216,000 $162,000 Buildings 270,000 378,000 Equipment 324,000 324,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 162,000 Buildings 270,000 Equipment 324,000 Cash 756,000 2. Sunland Enterprises purchased store equipment by making a $2,160 cash down payment and signing a 1-year, $24,840, 10% note payable. The purchase was recorded as follows. Equipment 29,484 Cash 2,160 Notes Payable 24,840 Interest Payable 2,484 3. Coronado Company purchased…
Plant acquisitions for selected companies are as follows. 1. Belanna Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $700,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land Buildings Equipment $200,0000 250,0000 300,0000 $150,00000 350,00000 300,00000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land Buildings Equipment Cash 150,000 250,000 300,000 700,000 2. Harry Enterprises purchased store equipment by making a $2,000 cash down payment and signing a 1-year, $23,000, 10% note payable. The purchase was recorded as follows. Equipment Cash Notes Payable Interest Payable 27,300 2,000 23,000 2,300 3. Kim Company purchased office equipment for $20,000, terms 2/10, n/30. Because…
on Knight Company made the following acquisitions during the year Purchased for P5,400,000 , excluding appraiser fee of P100,000 , a warehouse building and the land on which it is located The land had an appraised value of P3,000,000 and original cost of 100, 000 . The building had an appraised value of P2,000,000 and original cost of P2,800,000 . Purchased an office building and the land on which it is located for P7,500,000 and assumed an existing P2,500,000 mortgage . For realty tax purposes , the property is assessed at 600, 000 , 60 % of which is allocated to the land . What is the total cost of land ?
Reward Company made the following acquisitions during the year as follows; Purchased for P5,400,000, including appraiser fee of P50,000, a warehouse building and the land on which it is located. The land had an appraised value of P2,000,000 and original cost of P1,400,000. The building had an appraised value of P3,000,000 and original cost of PP2,800,000. Purchased and office building and the land on which it is located for P7,500,000 cash and assumed an existing P2,500,000 mortgage. For realty tax purposes, the property is assessed at P9,600,000, 60% of which is allocated to building. A. What is the total cost of the land? B. What is the total cost of the building?
On September 1, 20Y8, Vernon Corporation acquired Barlow Enterprises for a cash payment of $2,300,000. At the time of acquisition, Barlow's balance sheet showed assets of $1,800,000, liabilities of $600,000, and owner's equity of $1,200,000. A recent appraisal indicated that the fair value of Barlow's assets is estimated to be $2,100,000. How much goodwill was generated due to this acquisition? What is the net dollar value impact this transaction had on assets? What is the net dollar value impact this transaction had on liabilities? What is the net dollar value impact this transaction had on equity?
Cake Company acquired the following plant assets during the current year.· Equipment - Acquired at an invoice price of P600,000, subject to a 5% cash discount which was not taken.· Land - Acquired by issuing 10,000 shares of P50 par value when the market price of the share was P120. The shares issued are treasury shares which had been acquired at a cost of P90 per share. The fair value of the land is P1,100,000.· Machinery - Acquired at a cost of P275,000. Installation cost was P7,000, trial run and other testing cost P18,000, and construction of base, P10,000.What is the total increase in property, plant and equipment as a result of plant asset acquisitions? P1,770,000 P1,970,000 P1,980,000 P2,080,000