1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
slamgirl [31]
3 years ago
13

Rodriguez Company pays $375,000 for real estate plus $19,875 in closing costs. The real estate consists of land appraised at $18

9,000; land improvements appraised at $63,000; and a building appraised at $168,000. Required: 1. Allocate the total cost among the three purchased assets. 2. Prepare the journal entry to record the purchase.
Business
2 answers:
yaroslaw [1]3 years ago
7 0

Answer:

A. Land 177,693.75

Land improvements 59,231.25

Building157,950.00

B.

Journal Entry

Dr Land+/-177,693.75

Dr Land improvements+/-59,231.25

Dr Building+/-157,950.00

Cr Cash+/-394,875.00

Explanation:

Land appraised at $189,000

Land improvements appraised at $63,000 Building appraised at $168,000

TOTAL 420,000

% of Total × Total cost of Acquisition

Appraisal

volume

45% ×394,875=177,693.75Apportioned cost

15% ×394,875=59,231.25 Apportioned cost

40%×394,875=157,950.00 Apportioned cost

Total 100% =394,875.00

Purchase price 375,000 + Closing cost 19,875 = Total cost of acquisition 394,875

For percentage use total cost divided by appraised value 189,000 / 420,000 = 45%

For percentage use total cost divided by appraised value 63,000 / 420,000 = 15%

For percentage use total cost divided by appraised value 168,000 / 420,000 = 40%

Allocation of total cost: Land(394,875x 0.45) = 177,693.75.00 + land improvement (394,875 x 0.15) = 59,231.25+ building (394,875 x 0.4) = 157,950.00

177,693.75+59,231.25+157,950.00= Total 394,875.00

B. Journal entry to record the purchase

Dr Land+/-177,693.75

Dr Land improvements+/-59,231.25

Dr Building+/-157,950.00

Cr Cash+/-394,875.00

Temka [501]3 years ago
5 0

Answer:

1. Land cost $177,693.75

  Land improvement cost $59,231.25

  Building cost $157,950 .00

2. Debit Land  $177,693.75

   Debit  Land improvements  $59,231.25

   Credit Building $157,950 .00

Being entry to record the cost of real estate purchased.

Explanation:

Total cost of the real estate purchase will include the closing cost which is a key cost element. The allocated costs among the 3 purchased assets will be done proportionally to the appraised cost of each asset.

Total appraised value of the real estate purchased

= $189,000 + $63,000 + $168,000

= $420,000

Total cost of real estate based on payment

= $375,000 + $19,875

= $394,875

Cost allocated to;

Land improvements = ($63,000/$420,000) × $394,875

= $59,231.25

Land = ($189,000/$420,000) × $394,875

= $177,693.75

Building = ($168,000/$420,000) × $394,875

= $157,950 .00

The entry required would be debits to the individual assets account and a lump sum credit to cash for the transaction.

You might be interested in
_____political activities include
anastassius [24]
I think the answer is c for this question tbh well yah
6 0
3 years ago
HII I've made about 3 give aways with points and still have a bunch, but this question is asking if anyone wants to be friends?
Amiraneli [1.4K]

Answer:

ok I will send bro gg bye

5 0
3 years ago
Read 2 more answers
When the sponsor-investigator holds the ind for an investigational drug he or she is responsible for annual reporting of which o
Lapatulllka [165]

Answer: IND report

Explanation:

A sponsor investigator has numerous roles to perform which includes

Control of the investigational drug

Record retention

Reporting

Assurance of IRB review

Inspection.

So, under the reporting role he or she will be saddled with the responsibility of giving an annual report of the IND investigation.

6 0
3 years ago
One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and
hichkok12 [17]

GATT  is a very common term in business. One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and Trade.

<h3>What is the meaning of GATT?</h3>

The word simply means General Agreement on Tariffs and Trade. This  General Agreement is known to covers international trade in goods.

They are involved in Trade negotiations. The WTO is regarded as the successor to the General Agreement on Tariffs and Trade (GATT) set up after the Second World War.

Learn more about GATT from

brainly.com/question/7141880

5 0
2 years ago
what do you do if a caller needs a particular question answered and you're completely uncertain about who the caller should cont
barxatty [35]
(D) ask the callers name, number, and purpose of the call and tell him or her someone will call back in a few minutes.
The other answers do not look professional,as for answer D, the caller will feel you really care about him or her, since you have taken their contact detail and you have assured them someone will call them back shortly. It shows as a business you but your callers need first.
5 0
3 years ago
Other questions:
  • The Super Bowl is right around the corner and Gowgem Hotels is aquiver with anticipation. They'd like to price their rooms at th
    12·1 answer
  • Elias, the manager of eat big chain of restaurants, gives awards on a monthly basis to employees with highest productivity. this
    11·1 answer
  • A customer who lives in New York has an account with a broker-dealer and sales representative that are both registered in State
    15·1 answer
  • On January 1, 2017, a subsidiary sold equipment to its parent for $520,000. The subsidiary's original cost was $200,000 and as o
    12·1 answer
  • BreatheDeep, a monopolist, produces 10,000 doses of medicine for sever asthma at a cost of $4 per dose. If each dose is sold for
    6·1 answer
  • An insurance company knows that the average cost to build a home in a new California subdivision is ​$92 comma 297 and that in a
    12·1 answer
  • Human Resources Manager, Claire must inform Anthony that company job changes will require him to seek retraining or lose his pos
    13·1 answer
  • Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One
    15·1 answer
  • MC Qu. 138 Fortune Company's direct materials... Fortune Company's direct materials budget shows the following cost of materials
    7·1 answer
  • Like other corporations, market sales corporation can extend its operations through:_______
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!