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
Morgarella [4.7K]
3 years ago
6

Rodriguez Company pays $363,285 for real estate with land, land improvements, and a building. Land is appraised at $198,000; lan

d improvements are appraised at $66,000; and a building is appraised at $176,000. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Business
1 answer:
Irina18 [472]3 years ago
3 0

Answer:

1.Land $163,478

Land Improvement $54,493

Building $145,314

2.Dr Land $163,478

Dr r Land Improvement $54,493

Dr Building $145,314

Cr Cash $363,285

Explanation:

1. Calculation to Allocate the total cost among the three assets

First step is to Add up all expenditure costs Total Expenditure costs =$198,000+$66,000+$176,000

Total Expenditure costs =$440,000

Second step is to divide each expenditure up by the total amount

Land=($198,000/$440,000= 0.45)

Land improvement=($66,000/$440,000= 0.15)

Building=($176,000/$440,000= 0.40)

Now let Allocate the total cost among the three assets

Land=0.45* $363,285

Land = $163,478

Land improvement=0.15*$363,285

Land Improvement=$54,493

Building=0.40*$363,285

Building=$145,314

Total $363,285

($163,478+$54,493+$145,314)

Therefore the total allocation cost among the three assets is:

Land $163,478

Land Improvement $54,493

Building $145,314

2. Preparation of the journal entry to record the purchase

Dr Land $163,478

Dr r Land Improvement $54,493

Dr Building $145,314

Cr Cash $363,285

(To record purchase)

You might be interested in
Palmona Co. establishes a $250 petty cash fund on January 1. On January 8, the fund shows $145 in cash along with receipts for t
natima [27]

Answer: Please see answer in explanatory column

Explanation:

1) Journal entry to establish the fund on January 1st.

Account                    Debit                      Credit

Petty Cash                $250

Cash                                                            $250

2) journal entry to record re-imbursement   on January 8.

Account                                 Debit                    Credit

Postage expense                $43

Merchandised inventory     $14

Delivery Expense                 $16

miscellaneous expenses,   $32

Cash                                                                    $105

3) journal entries to record reimbursement of  the fund and increment to $300 on January 8

Account                    Debit                      Credit

Petty Cash                $150

Cash                                                           $150

Petty cash increasing to $300, therefore the increased amount

$300- $250= $150

3 0
3 years ago
In a _______, the majority of a nation’s land, factories, and other economic resources are privately owned by individuals or bus
katovenus [111]
In a market economy
8 0
3 years ago
The IRR rule states that firms should accept any project offering an internal rate of return in excess of the cost of capitalA.
gtnhenbr [62]

Answer:

A. True

Explanation:

Internal rate of return abbreviated as  IRR, is a capital budgeting technique used to evaluate the profitability of a potential project or an investment. In calculating the IRR,  the net present value of the project's cash inflows is set at zero.  Getting the actual value of the IRR is through trial and error, or specially programmed software.

IRR shows the growth rate a project or an investment is expected to generate. The higher the value, the better. As a rule, only projects whose IRR is greater than the minimum required rate of return should be accepted. The required rate of return is the same as the cost of capital for the project.

6 0
2 years ago
Turrubiates Corporation makes a product that uses a material with the following standards: Standard quantity 7.6 liters per unit
frosja888 [35]

Answer:

Direct material quantity variance= $1,260 unfavorable

Explanation:

Giving the following information:

Standard quantity of 7.6 liters per unit

Standard price $ 2.10 per liter

The company budgeted for production of 3,400 units.

The actual production was 3,500 units.

The company used 27,200 liters of direct material to produce this output.

To calculate the direct material quantity variance, we need to use the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 3,500 units* 7.6= 26,600

Direct material quantity variance= (26,600 - 27,200)*2.1= $1,260 unfavorable

<u>It is unfavorable because the company used more material than estimated to produce 3,500 units.</u>

6 0
3 years ago
How do you call a person who receives the benefit of a good without paying for it (business terminology).
Genrish500 [490]
This kind of person in business terminology is called a free rider.
3 0
3 years ago
Other questions:
  • Small-business owner Marcos set up his Google Ads campaign by thinking of “obvious” keywords off of the top of his head. What's
    6·1 answer
  • Total quality management theorizes that if workers are more responsible, they will ______.
    7·2 answers
  • When customers​ don't know what they want or​ don't even know​ what's possible, the most effective marketing strategy is​ ______
    15·1 answer
  • The use of risk quadrants to identify and categorize risk can provide a framework for holistic risk identification. Which quadra
    10·2 answers
  • Which type of tort happens when you unfairly damage another company's reputation?
    6·1 answer
  • Soft skills are essential career attributes that include communicating effectively, solving problems, making ethical decisions,
    5·2 answers
  • The quantity demanded of a good is the amount that buyers are a. willing to purchase. b. willing and able to purchase. c. willin
    8·1 answer
  • Beech Corp., an accrual-basis, calendar-year S corporation, has been an S corporation since its inception. At the beginning of t
    10·1 answer
  • You expect interest rates to decline in the near future even though the bond market is not indicating any sign of this change. W
    14·1 answer
  • What influences the behavior of employees and gives confidence to the strategic teams that make things happen?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!