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Account Titles and Explanation Debit Credit Acquisition of Assets 1 and 2 Machinery Equipment Cash 190000 Acquisition of Asset 3 Machinery Discount on Notes Payable Notes Payable Cash Acquisition of Asset 4 Machinery Accumulated Depreciation-Machinery Cash Machinery Gain on Disposal of Machinery Acquisition of Asset 5 Equipment Common Stock (To record acquisition of Office Equipment) Buildings Land Cash Interest Expense Cash 68210 7790 190000 Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accumulated Depreciation-Machinery Accumulated Depreciation-Trucks Buildings Cash Computers Common Stock Contribution Expense Contribution Revenue Cost of Goods Sold Depreciation Expense Direct Labor Discount on Notes Payable Equipment Factory Overhead Forklift Furniture Gain on Disposal of Buildings Gain on Disposal of Equipment Gain on Disposal of Machinery Gain on Disposal of Trucks Gain on Disposal of Plant Assets Insurance Expense Interest Expense Interest Payable Interest Revenue Inventory Land Land Improvements Loss on Disposal of Buildings Loss on Disposal of Equipment Loss on Disposal of Machinery Loss on Disposal of Trucks Machinery Maintenance and Repairs Expense Materials No Entry Notes Payable Organization Expense Paid-in Capital in Excess of Par - Common Stock Prepaid Insurance Retained Earnings Salaries and Wages Expense Sales Revenue Trading Securities Trucks Concord Industries purchased the following assets and constructed a building as well. All this was done during the current year. Assets 1 and 2: These assets were purchased as a lump sum for $190,000 cash. The following information was gathered. Asset 3: This machine was acquired by making a $19,000 down payment and issuing a $57,000,2-year, zero-interest-bearing note. The note is to be paid off in two $28,500 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $68,210. Asset 4: This machinery was acquired by trading in used machinery. (The exchange lacks commercial substance.) Facts concerning the trade-in are as follows. Asset 5: Equipment was acquired by issuing 100 shares of $15 par value common stock. The stock had a market price of $21 per share. Construction of Building: A building was constructed on land purchased last year at a cost of $285,000. Construction began on February 1 and was completed on November 1 . The payments to the contractor were as follows. To finance construction of the building, a $1,140,000,12% construction loan was taken out on February 1 . The loan was repaid on November 1 . The firm had $380,000 of other outstanding debt during the year at a borrowing rate of 8%. Record the acquisition of each of these assets. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. 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 O for the amounts.)

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