Prepare journal entries to record the following transactions: Coaster Company recently acquired several items of property, plant and equipment as follows:Purchased an equipment for P50,000 in cash and 10,000 shares of Coaster Company P100 par ordinary shares which sold for P120 on transaction date.Acquired a machinery for cash. The machinery was priced at P800,000 and a 5% cash discount is allowed.Acquired furnitures and fixtures for P100,000 by issuing a 60-day, 12% note.Coaster acquired the assets of Leap Company, which had discontinued operations. The fair values of the property are:Land P3,000,000Building 6,000,000 The lumpsum price of the land and building is P8,350,000 which was paid in cash.

At the time of purchase of fixed assets, fixed assets account will be debited and mode of payment…

Answered: Prepare journal entries to record the…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1CP: Prepare general journal entries for the following transactions, identifying each transaction by...

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Prepare journal entries to record the following transactions:

Coaster Company recently acquired several items of property, plant and equipment as follows:

Purchased an equipment for P50,000 in cash and 10,000 shares of Coaster Company P100 par ordinary shares which sold for P120 on transaction date.
Acquired a machinery for cash. The machinery was priced at P800,000 and a 5% cash discount is allowed.
Acquired furnitures and fixtures for P100,000 by issuing a 60-day, 12% note.
Coaster acquired the assets of Leap Company, which had discontinued operations. The fair values of the property are:

Land P3,000,000

Building 6,000,000

The lumpsum price of the land and building is P8,350,000 which was paid in cash.

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