Zeidler Company bought a building and the land on which the building is located for a total cash price of $183,500. The company paid transfer costs of $3,100. Renovation costs on the building were $14,320. An independent appraiser provided market values for the land, $220,000, and building, $880,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.) Item Building Land Apportioned cost $ No 1 $ Renovation cost 149,280 $ 37,320 186,600 Transaction 1 14,320 $ 0 Purchase cost 2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet Building Land $ Cash 163,600 37,320 200,920 General Journal Debit 163,600 37,320 Credit 200,920

Zeidler Company bought a building and the land on which the building is located for a total cash price of $183,500. The company paid transfer costs of $3,100. Renovation costs on the building were $14,320. An independent appraiser provided market values for the land, $220,000, and building, $880,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.) Item Building Land Apportioned cost $ No 1 $ Renovation cost 149,280 $ 37,320 186,600 Transaction 1 14,320 $ 0 Purchase cost 2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet Building Land $ Cash 163,600 37,320 200,920 General Journal Debit 163,600 37,320 Credit 200,920

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

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Zeidler Company bought a building and the land on which the building is located for a total cash price of $178,000. The company paid transfer costs of $2,000. Renovation costs on the building were $23,000. An independent appraiser provided market values for the land, $110,000, and building, $330,000 before renovation. Required: 1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.) Item Apportioned cost Renovation cost Purchase cost Building Land $ 2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 3. Compute depreciation of the building at the end of one year, using the straight-line method. Assume an estimated…
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