Problem 23-5 (IAA) quisitions 1. Nutty Company made the following individual cash purchases: ,000,000 taken. Land and building Machinery and office equipment Delivery equipment 6,000,000 1,800,000 500,000 the old lachine An appraisal disclosed the following fair value: 1,000,000 3,000,000 800,000 400,000 350,000 Land entity onthly chine Building Machinery Office equipment Delivery equipment 2. Nutty Company acquired the assets of another entity with the following fair value: sed a 1,000,000 5,000,000 2,000,000 erest Land Building Machinery The The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. of ary 3. Received a parcel of land located in Davao City from a philanthropist as an inducement to locate a plant in the city. The land has a fair value of P1,500,000. is 4. The entity paid cash for machinery, P900,000 subject to 2% cash discount, and freight on machinery, P35,000. a 5. The entity acquired furniture and fixtures by issuing a P400,000 two-year noninterest-bearing note. In similar transactions, the entity has paid 12% interest. The present value of 1 at 12% for 2 years is .797, and the present value of an annuity of 1 at 12% for 2 years is 1.69. Required: Prepare journal entries to record the transactions. 653
Problem 23-5 (IAA) quisitions 1. Nutty Company made the following individual cash purchases: ,000,000 taken. Land and building Machinery and office equipment Delivery equipment 6,000,000 1,800,000 500,000 the old lachine An appraisal disclosed the following fair value: 1,000,000 3,000,000 800,000 400,000 350,000 Land entity onthly chine Building Machinery Office equipment Delivery equipment 2. Nutty Company acquired the assets of another entity with the following fair value: sed a 1,000,000 5,000,000 2,000,000 erest Land Building Machinery The The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. of ary 3. Received a parcel of land located in Davao City from a philanthropist as an inducement to locate a plant in the city. The land has a fair value of P1,500,000. is 4. The entity paid cash for machinery, P900,000 subject to 2% cash discount, and freight on machinery, P35,000. a 5. The entity acquired furniture and fixtures by issuing a P400,000 two-year noninterest-bearing note. In similar transactions, the entity has paid 12% interest. The present value of 1 at 12% for 2 years is .797, and the present value of an annuity of 1 at 12% for 2 years is 1.69. Required: Prepare journal entries to record the transactions. 653
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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