90.2K

Verified Solution

Link Copied!

All I need are blank boxes not outlined in red.

Indigo 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 $120,000 cash. The following information was gathered. Initial Cost on Depreciation to Description Seller's Books Date on Seller's Books Machinery $120,000 $60,000 Equipment 72,000 12,000 Book Value on Seller's Books Appraised Value $60,000 $108,000 60,000 36,000 Asset 3: This machine was acquired by making a $12.000 down payment and issuing a $36,000, 2-year, zero-interest-bearing note. The note is to be paid off in two $18,000 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $43,080. Asset 4: This machinery was acquired by trading in used machinery. (The exchange tacks commercial substance.) Facts concerning the trade-in are as follows $120,000 Cost of machinery traded Accumulated depreciation to date of sale Fair value of machinery traded 48,000 96,000 Cash received 12.000 Fair value of machinery acquired 84,000 Asset 5: Equipment was acquired by issuing 100 shares of $10 par value common stock. The stock had a market price of $13 per share. Construction of Building: A building was constructed on land purchased last year at a cost of $180,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows. Date Payment 2/1 $144,000 432.000 6/1 9/1 576,000 11/1 120,000 To finance construction of the building a $720,000, 12% construction loan was taken out on February 1. The loan was repaid on November 1. The firm had $240,000 of other outstanding debt during the year ata borrowing rate of 8%. Record the acquisition of each of these assets. (Round intermediate calculations to 5 decimal places, eg. 1.25124 and final answer to o decimal places e.3.58,971. 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 for the amounts) Account Titles and Explanation Debit Credit Acquisition of Assets 1 and 2 Machinery 90000 Equipment 30000 120000 Cash Acquisition of Asset 3 Machinery 43080 4920 36000 Notes Payable 12000 Cash Acquisition of Asset 4 Machinery 12000 Cash Acquisition of Asset 4 Machinery Cash 12000 Accumulated Depreciation Machinery 48000 Machinery 120000 Gain on Disposal of Machinery Acquisition of Asset 5 1300 Equipment 1000 Common Stock 300 Paid-in Capital in Excess of Par Common Stock (To record acquisition of Office Equipment) Buildings Machinery 120000 Gain on Disposal of Machinery Acquisition of Asset 5 Equipment 1300 1000 Common Stock 300 Pald-in Capital in Excess of Par - Common Stock (To record acquisition of Office Equipment) Buildings Interest Expense Cash

Answer & Explanation Solved by verified expert

See Answer