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Student Name:
Class:
Estimated
Market Percent Apportioned
Value of Total Cost
Building $508,800 53% $477,000 «- Correct!
Land 297,600 31% 279,000 «- Correct!
Land Improvements 28,800 3% 27,000 «- Correct!
Vehicles 124,800 13% 117,000 «- Correct!
Totals $960,000 100% $900,000 «- Correct!
Problem 10-01A
McGraw-Hill/Irwin
Instructor
Schedule
TIMBERLY CONSTRUCTION
General Journal
TIMBERLY CONSTRUCTION
900,000$
508,800$
297,600$
28,800$
124,800$
15
27,000$
5
30,000$
10,800$
Land
TIMBERLY CONSTRUCTION
Given Data P10-01A:
Cash price for all assets purchased
Estimated market values:
Building
Check figures:
(2)
(3)
Land improvements
Vehicles (4)
Building:
Useful life in years
Salvage value
Land improvements useful life in years
Student Name:
Class:
Land Land
Building Building Improvements Improvements
Land Two Three One Two
1,612,000$ 598,000$ 390,000$
328,400
175,400
2,202,000$
164,000$
2,115,800$ 598,000$ 2,202,000$ 390,000$ 164,000$
Correct! Correct! Correct! Correct! Correct!
* Allocation of Purchase Price: Appraised Percentage Apportioned
Value of Total Cost
1,736,000$ 62% 1,612,000$ «- Correct!
644,000 23% 598,000 «- Correct!
420,000 15% 390,000 «- Correct!
2,800,000$ 100% 2,600,000$ «- Correct!
Date Account Titles Debit Credit
Jan. 1 2,115,800
598,000
2,202,000
390,000
164,000
5,469,800 «- Correct!
Dec. 31 26,900
26,900 «- Correct!
31 72,400
72,400 «- Correct!
31 32,500
32,500 «- Correct!
31 8,200
8,200 «- Correct!
Instructor
To record cost of plant assets.
Schedule
MITZU CO.
General Journal
MITZU CO.
New building
To record depreciation.
To record depreciation.
To record depreciation.
To record depreciation.
Problem 10-02A
McGraw-Hill/Irwin
Purchase price *
Demolition
Land grading
Cash
New improvements
Totals
Totals
Land
Building 2
Land Improvements 1
Building 2
Land
Building 3
Land Improvements 1
Land Improvements 2
Accumulated Depreciation, Land Imp. 2
Depreciation Expense, Building 2
Accumulated Depreciation, Bldg. 2
Depreciation Expense, Building 3
Accumulated Depreciation, Bldg. 3
Depreciation Expense, Land Improvements 1
Accumulated Depreciation, Land Imp. 1
Depreciation Expense, Land Improvements 2
2,600,000$
644,000$
20
60,000$
420,000$
12
-$
1,736,000$
328,400$
175,400$
2,202,000$
25
392,000$
164,000$
20
-$
2,115,800$
598,000$
32,500$
8,200$
Useful life in years
MITZU CO.
Given Data P10-02A:
Purchase price for land and 2 buildings
Building Two:
Appraised value
Salvage value
Salvage value
Land Improvements One:
Appraised value
Useful life in years
Salvage value
Appraised value of land only
Cost to demolish Building One
Cost of additional land grading
Cost to construct Building Three
Building Three:
Useful life in years
(1) Land costs
Building 2 costs
(3) Depr. - Land improvement 1
Depr. - Land improvement 2
Cost of Land Improvements Two
Land Improvements Two:
Useful life in years
Salvage value
Check figures:
