Assume that Sage follows ASPE. Prepare the journal entry to record the purchase of the building. (Credit
Q: Skysong Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf…
A: Intangible Assets: An intangible asset is a distinguishable non-monetary item that does not have a…
Q: Prepare the intangible assets section of Larkspur Golf Inc. at December 31, 2019
A:
Q: ) Young Company has provided information on intan- gible assets as follows. A patent was purchased…
A: The amortization cost for the year 2019 is $100,000. The amortization cost of patent is calculated…
Q: On March 31, 2021, Susquehanna Insurance purchased an office building for $12,000,000. Based on…
A: Purchase Price of office building(including land)= $12000000 Price allocated between building &…
Q: On January 1, 2019, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000,…
A: Prepare journal entry.
Q: On December 31, 2020, Empresas La Sidrita acquired a building. La Sidrita paid a third of the…
A: Investment activities section reports the cash inflow and outflow related to the purchase or sale of…
Q: On November 1,2019, ABC Company's board of directors declared property dividends distributable on…
A: Property dividend is a form of distribution that is being made to the shareholders in form of assets…
Q: On January 1, 2020, Blossom Company makes the two following acquisitions. 1. Purchases land having a…
A: The notes payables are generally classified as a long-term liability. In case a note payable is due…
Q: ) Record the two journal entries that should be recorded by Sweet Company for the two purchases on…
A: Journal entry: Business Transaction are recorded through Journals. Interest Expenses are the…
Q: On November 22, 2020, Ms. Wilma Vander purchased an automobile to be used exclusively in her newly…
A: The cost of the automobile is $45,000 before GST and it is a class 10.1 vehicle. Hence, the maximum…
Q: On January 1, 2021, Bard Ltd. has a Class 8 (20% rate) UCC balance of $32,400. The Class 8 property…
A: When a capital asset is purchased for the purpose of utilization in business, the entire cost price…
Q: On March 31, 2021, Susquehanna Insurance purchased an office building for $12,000,000. Based on…
A: Depreciation is a way to reduce the cost of asset over a period of time due to usage, wear &…
Q: Small Corporation purchases and places in service the following 100% business-use assets. Small does…
A: The performance of the assets purchased by the company will reduce each year. To record this…
Q: On January 1, 2019, Coopers Industries bought a parcel of land for use in its operations by paying…
A: Introduction: Acquisition cost refers to the whole cost of buying an asset. Those costs include…
Q: On April 1, 2018, the Apex Corporation sold a parcel of underdeveloped land to the Applegate…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Don Camilo Company, a real estate entity, had a building in Legarda Rd. with a carrying amount of…
A: Carrying Amount of the Building = P20,000,000 Fair Value of the Building = P35,000,000 Useful life =…
Q: On November 1, 2021, the company acquired a tract of land with an existing building in exchange for…
A: Since there are multiple questions, 2 sub - questions are solved. Please re-post this question for…
Q: Kervin Company acquired three items of machinery as follows: During 2021, the entity purchased a…
A: Cost refers to the amount at which the goods are exchanged and purchased in the market by the…
Q: Coopers Industries purchased a block of land for use in its activities on January 1, 2019, by paying…
A: Appraisal prices are a subset of fine manipulate costs. Appraisal fees are paid through agencies as…
Q: On January 1, 2018, Laramie Inc. acquired land for $6.2 million. Laramie paid $1.2 million in cash…
A: The answer for the question regarding acquisition of Land is presented hereunder :
Q: On January 1, 2021
A:
Q: ABC Corporation was incorporated on January 2, 2016. The following items relate to the ABC's…
A: The total cost of fixed assets is calculated by adding the cost price and all other expenses…
Q: On July 1, 2020, Hedwig Emporiums purchased Nargle Enterprises by paying $300,000 cash and issuing…
A: Journal entry: This is the first step to record accounts. It is written in the same order in which…
Q: Skysong Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf…
A: An asset is depreciated if it has limited useful life. When the asset has indefinite life it need…
Q: On January 1, 2020, Ivanhoe Company makes the two following acquisitions. 1. Purchases land…
A: Here in this question, we are required to make entry for recording of purchase of assets. When…
Q: A patent was acquired from another company on January 1, 2019, for $25,000.The useful life is 10…
A: Amortisation is reduction in the value of intangible assets like patents…
Q: On April 1, 2019, Fastener Corporation, a calendar year, cash method C-Corporation, sold land that…
A: Workings: Purchase price in Feb, 2004 = $400,000 Selling price( $100000+200,000+$300,000) =…
Q: Magical Manufacturing Company purchased land, a building, and some vehicles on January 7, 2021, for…
A: In case of assets purchased together i.e. multiple assets at a single price, then cost of each asset…
Q: Ivanhoe Company purchased land, a building, and equipment on January 2, 2021, for $940,000. The…
A: Total estimated value of land, building and equipment = $388000 +$446200+$135800 =$970,000
Q: On January 1, 2016, Coopers Industries bought a parcel of land for use in its operations by paying…
A: The overall amount made by a firm in getting a new client or purchasing an asset is known as the…
Q: Larkspur Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf…
A: Intangible assets are assets that lack physical substance but they contribute towards the earning…
Q: Assume that a company that incorporated (just started business) on February 25, 2017, and purchased…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: On January 1, 2019, Alberta Company purchased land and a building for $1,120,000. At the time of the…
A: Journal entry for purchase includes a debit to the asset bought and a credit to cash (if paid in…
Q: On January 1, 2020, Sage Company makes the two following acquisitions. 1. Purchases land…
A: Determine cost of the equipment purchased.
Q: On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000,…
A:
Q: On January 1, 2015, Coopers Industries bought a parcel of land for use in its operations by paying…
A: Cost of acquisition of fixed assets include purchase price of fixed assets along with all costs…
Q: On January 1,2021, ABC Corporation purchased a land for P 15,000,000. In exchange of the land, ABC…
A: There is always interest on notes payable, which needs to be recorded separately. In this case there…
Q: On March 31, 2021, Susquehanna Insurance purchased an office building for $10,200,000. Based on…
A: The question is related to Depreciation Accounting. Depreciation reduces the value of the assets…
Q: Zaki LLC purchased computer equipment (five-year property) on April 20, 2018, for $36,000 and used…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a…
A: Capitalizes Interest: It is the interest cost of borrowing to acquire or construct a long-term asset…
Q: On July 16, 2020, Logan acquires land and a building for $500,000 to use in his sole proprietorship.…
A: The adjusted basis for land and building at the acquisition date is Land : $100,000 Building :…
Q: Tamarisk Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf…
A: Note: Hey, since there are multiple Requirements posted, we will answer the first three…
Q: Ms. Drake sold a business that she had operated as a sole proprietorship for 18 years. On date of…
A: Answer: Particulars Inventory Others Goodwill Total Amount realized 154000 73400 89100 316500…
Q: In 2015, Charm Company purchased a P5,000,000 life insurance policy on its president, of which Charm…
A: Solution- Advance premium paid 200000 Add opening cash surrender value 435000 635000…
Q: On July 1, 2020, ABC Incorporated accepted several office equipment from a shareholder with original…
A: The question is related to recognition of Property, Plant and Equipment. The PPE are initially…
Q: On January 1, 2020, Concord Company makes the two following acquisitions. 1. Purchases land…
A: Period PV factor Remark 1 0.90090 = 1 / 1.11 2 0.81162 = 0.9009 / 1.11 3…
Q: square meters are still unsold and the market value of the lost had increased to P1,600 per square…
A: We have to find out the amout of gain as a result of transfer
On June 15, 2019, Sage Corporation purchased a building for $1,548,000 in cash. The building was sold to Sage by Joe Qwinn, who owned a majority of shares in the corporation. Qwinn had purchased the building ten years previously for $726,800.
(a1)
Assume that Sage follows ASPE. Prepare the
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
June 15, 2017 |
|||
Step by step
Solved in 2 steps
- Respond to the requirements in each situation. Instructions a. On January 1, 2020, Zarle Inc. sold computer equipment to Daniell Co. The sales price of the equipment was $520,000 and its carrying amount is $400,000. Record any journal entries necessary for Zarle from the sale of the computer equipment in 2020. b. Use the information from part a. Assume that, on the same day the sale occurred, Zarle enters into an agreement to lease the equipment from Daniell for 10 years with annual lease payments of $67,342.42 at the end of each year, beginning on December 31, 2020. If Zarle has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Zarle from the sale and leaseback of computer equipment in 2020. c. Use the information from part b. Now, instead of 10 years, the lease term is only 3 years with annual lease payments of $67,342.42 at the beginning of each year. Record any journal entries necessary…Sandhill Corp. sells idle machinery to Hollis Company on July 1, 2020, for $33,000. Sandhill agrees to repurchase this equipment from Hollis on June 30, 2021, for a price of $34,320 (an imputed interest rate of 4%). Prepare any other necessary journal entries for Sandhill in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Interest Expense enter a debit amount enter a credit amount Liability to Hollis Company enter a debit amount enter a credit amountOn April 13, 2023, Swifty Ltd. purchased a small apartment building with eight suites. The building qualified as an investment property under IAS 40. At the time of purchase, six out of the eight suites were rented. Swifty paid the following items at the time of its acquisition of the apartment building (all items were paid in cash except for the building itself, for which Swifty took out a mortgage): Purchase price of building $4,050,000 Legal fees 7,720 Property transfer fees 24,500 Painting of empty apartments 5,390 Advertising for empty apartments 2,000 On April 14 the previous owner of the apartment building paid Swifty $13,000 for damage deposits from the existing tenants. On December 31, 2023, the apartment building had a fair value of $4,250,000. On December 31, 2024, it was determined that the apartment building had a fair value of $4,040,000. Assuming Swifty follows IFRS, prepare the journal entries required to record the above events. (Credit account titles are automatically…
- Jim Junction purchased a business building on November 17, 2021, for $400,000. On July 21,2022, he exchanged the building for another business building in a like-kind exchange. The newbuilding had a fair market value of $420,000. When does the holding period on the new building begin and what is its basis? Please Introduction and explanation step by step without plagiarism pleaseI need help on how to calculate this problem step by step, please. Information concerning Sure Corporation's intangible assets is as follows: On January 1, 2019, Sure signed an agreement to operate as a franchisee of Rapid Copy Service Inc. for an initial franchise fee of $81,000. Of this amount, $21,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $15,000 each beginning January 1, 2020. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 2, 2019, of the 4 annual payments discounted at 12% (the implicit rate for a loan of this type) is $45,600. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Sure's revenue from the franchise for 2019 was $800,000. Sure estimates the useful life of the franchise to be 5 years. Sure incurred $69,000 of experimental and development costs in its…Bridgeport Corporation commenced operations in early 2025. The corporation incurred $44,500 of costs such as fees to underwriters, legal fees, state fees, and promotional expenditures during its formation. Prepare journal entries to record the $44,500 expenditure and 2025 amortization, if any. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.). Account Titles and Explanation (To record costs incurred) (To record amortization expense) Debit Credit
- On January 1, 2022, Don Buchanan purchases a business that he will carry on as a sole proprietor. The purchase price includes $60,000 for goodwill. The business has a fiscal period that ends on December 31 and, for 2022, Don claims the maximum CCA. On January 1, 2023, the business is sold in an arm's length transaction with $82,000 paid for the goodwill. The affect of the sale of the goodwill is to increase net income for 2022 by: a. $14,000. b. $13,500. c. $15,500. d. $11,000.On January 1, 2025, Splish Co. sells land for which it had paid $705,700 to Sargent Company, receiving in return Sargent's zero- interest-bearing note for $900,000 payable in 5 years. What entry would Splish make to record the sale, assuming that Splish frequently sells similar items of land for a cash sales price of $650,000? (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries) Date Account Titles and Explanation Jan. 1 Debit CreditFor the year ended December 31, 2018, Carla Vista Ltd. had the following transactions related to the purchase of property. Assume all transactions are for cash unless otherwise stated. Feb. 7 Purchased real estate for $ 1 million, paying $ 292,700 cash and signing a mortgage payable for the balance. The site had an old building on it and the current values of the land and building were $ 0.9 million and $ 101,400, respectively. The old building will be demolished and a new apartment building will be constructed on the site. 9 Paid legal fees of $ 20,080 on the real estate purchase of February 7. 15 Paid $ 61,670 to demolish the old building and make the land ready for the construction of the apartment building. 16 Received $ 15,880 from the sale of material from the demolished building. 28 Paid $4,000 to grade the land in preparation for the construction of the apartment building. Mar. 2 Paid architect fees of $ 67,570 to design the apartment building. July 2 The full cost for…
- Gunkelson Company sells equipment on September 30, 2019, for $18,000 cash. The equipment originally cost $72,000 and as of January 1, 2019, had accumulated depreciation of $42,000. Depreciation for the first 9 months of 2019 is $5,250.Prepare the journal entries to (a) update depreciation to September 30, 2019, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)Monty Corp. sells idle machinery to Sandhill Company on July 1, 2020, for $63,000. Monty agrees to repurchase this equipment from Sandhill on June 30, 2021, for a price of $66,780 (an imputed interest rate of 6%). a)Prepare the journal entry for Monty for the receipt of cash from Sandhill on July 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation July 1, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT b)Prepare any other necessary journal entry for Monty in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020 c)Prepare the journal entries for Monty when the machinery is…Assuming Concord is a private enterprise that applies ASPE, prepare the journal entry related to a December 31, 2024 fair value of $942,000 and an adjusted carrying amount at that date of $919,500. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select
