ACCT.PRINCIPLES (LL)-PACKAGE
14th Edition
ISBN: 9781119707103
Author: Weygandt
Publisher: WILEY
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Chapter 1, Problem 6Q
To determine
Introduction: The recording process is a process of recording and noting the financial transactions that can be expressed in monetary terms in the books of the account. The process is being followed for the purpose of drawing conclusions regarding the net result and net position of the business at any particular point in time.
To determine: The value of land to be reported on Dec 31, 2020.
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Benton Travel Agency purchased land for $90,000 cash on December 10, 2022. At December 31, 2022, the land’s value has increased to $92,000. What amount should be reported for land on Benton’s balance sheet on December 31, 2022? Explain.
On January 1, 2018, Prairie Enterprises purchased a parcel of land for $14,000 cash. At the time of purchase, the company planned to use the land for a warehouse site. In 2020, Prairie Enterprises changed its plans and sold the land.
Required
Assume that the land was sold for $15,540 in 2020.
(1) Show the effect of the sale on the accounting equation.
(2) What amount would Prairie report on the 2020 income statement related to the sale of the land?
(3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land?
Assume that the land was sold for $13,160 in 2020.
(1) Show the effect of the sale on the accounting equation.
(2) What amount would Prairie report on the 2020 income statement related to the sale of the land?
(3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land?
A company purchases land for $30,000 on December 1, 2017. On December 31, 2021, the land has an estimated value of $45,000. The company had received a written offer for the land of $43,000 on November 15, 2021. What amount should the land be recorded at on the financial statements on December 31, 2021?
Chapter 1 Solutions
ACCT.PRINCIPLES (LL)-PACKAGE
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - 4. What uses of financial accounting information...Ch. 1 - Prob. 5QCh. 1 - Prob. 6QCh. 1 - 7. What is the monetary unit assumption?
Ch. 1 - 8. What is the economic entity assumption?
Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - 11. What is basic accounting equation?
Ch. 1 - Prob. 12QCh. 1 - 13. Which of the following items are liabilities...Ch. 1 - 14. Can a business enter into a transaction in...Ch. 1 - 15. Are the following events recorded in the...Ch. 1 - 16. Indicate how the following business...Ch. 1 - Prob. 17QCh. 1 - Prob. 19QCh. 1 - Bayler Enterprises had a capital balance of...Ch. 1 - 21. Summarized operations for Bayles Co. for the...Ch. 1 - Prob. 22QCh. 1 - BE1-1 Presented below is the basic accounting...Ch. 1 - BE 1-3 At the beginning of the year, Gilles...Ch. 1 - BE1-4 Use the expanded accounting equation to...Ch. 1 - BE1-5 Indicate whether each of the following items...Ch. 1 - BE1-8 Classify each of the following items as...Ch. 1 - BE1-6 Presented below are three business...Ch. 1 - BE1-7 Follow the same format as in BE1-6....Ch. 1 - BE 1 - 9 Presented below are three transactions....Ch. 1 - BE1-11 Indicate whether the following items would...Ch. 1 - Prob. 1DIECh. 1 - Indicate whether each of the five statements...Ch. 1 - Prob. 3DIECh. 1 - Prob. 4DIECh. 1 - Presented below is selected information related to...Ch. 1 - Prob. 1ECh. 1 - E1-2 (a) The following are users of financial...Ch. 1 - E1-3 Angela Duffy, president of Duffy Company, has...Ch. 1 - E1-4 The following situations involve accounting...Ch. 1 - E1-5 Diehl Cleaners has the following balance...Ch. 1 - E1-6 Selected transactions for Green Valley Lawn...Ch. 1 - E1-8 An analysis of the transactions made by...Ch. 1 - Saira Morrow is the sole owner of Buena Vista...Ch. 1 - P1-1A On April 1, Julie Spengel established...Ch. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - P1-5A Financial statement information about four...Ch. 1 - CC1 Natalie Koebel spent much of her childhood...Ch. 1 - Prob. 1ECCh. 1 - Prob. 1EYCTCh. 1 - Prob. 2EYCTCh. 1 - Prob. 5EYCTCh. 1 - Prob. 1ISTQCh. 1 - Prob. 2ISTQCh. 1 - Prob. 1IFRSPCh. 1 - Prob. 2IFRSP
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