{"id":47449,"date":"2022-03-31T20:47:45","date_gmt":"2022-03-31T20:47:45","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/acct-305-week-1-homework\/"},"modified":"2022-03-31T20:47:45","modified_gmt":"2022-03-31T20:47:45","slug":"acct-305-week-1-homework","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/acct-305-week-1-homework\/","title":{"rendered":"Acct 305 week 1 homework"},"content":{"rendered":"<div>\n<p>\u00a0<\/p>\n<p><strong><span>Week 1 Homework Solutions<\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span>Exercises E10-1, E10-8 &amp; E10-14, and E10-18<\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><span><strong><span>Exercise 10-1<\/span><\/strong><\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span><span><span>E 10\u20131: <\/span><\/span><\/span><span><span>Acquisition costs; land and building<\/span><\/span><\/h2>\n<p>\u00a0<\/p>\n<p><strong><span><span>LO10\u20131<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span><span>On March 1, 2013, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2013. Costs incurred during this period are listed below:<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><span><img loading=\"lazy\" decoding=\"async\" src=\"\" alt=\"\" width=\"604\" height=\"129\"\/><\/span><\/p>\n<p>\u00a0<\/p>\n<p><strong><span><span>Salvaged materials resulting from the demolition of the old building were sold for $2,000.<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span><span>Required:<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span><span>Determine the amounts that Beldon should capitalize as the cost of the land and the new building.<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><span>\u00a0<\/span><\/p>\n<p>\u00a0<\/p>\n<p><strong><span>Exercise 10-8<\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><span>\u00a0<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span><span><span>E 10\u20138: <\/span><\/span><\/span><span><span>Lump-sum acquisition<\/span><\/span><\/h2>\n<p>\u00a0<\/p>\n<p><strong><span><span>LO10\u20132<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span><span>Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $900,000. According to independent appraisals, the fair values were $450,000 (building A) and $250,000 (building B) for the buildings and $300,000 for the land.<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span><span>Required:<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span><span>Determine the initial valuation of the buildings and the land.<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><span><strong><span>Exercise 10\u201314<\/span><\/strong><\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span><span><span>E 10\u201314: <\/span><\/span><\/span><span><span>Disposal of property, plant, and equipment<\/span><\/span><\/h2>\n<p>\u00a0<\/p>\n<p><strong><span><span>LO10\u20136<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span><span>Funseth Farms Inc. purchased a tractor in 2010 at a cost of $30,000. The tractor was sold for $3,000 in 2013. Depreciation recorded through the disposal date totaled $26,000.<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span><span>Required:<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<ul>\n<li><span><strong><span>1.<\/span><\/strong><\/span><strong><span> <span>Prepare the journal entry to record the sale.<\/span> <\/span><\/strong><\/li>\n<li><span><strong><span>2.<\/span><\/strong><\/span><strong><span> <span>Assuming that the tractor was sold for $10,000, prepare the journal entry to record the sale.<\/span> <\/span><\/strong><\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<p><span><strong><span>Exercise 10\u201318<\/span><\/strong><\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span><span><span>E 10\u201317: <\/span><\/span><\/span><span><span>Nonmonetary exchange<\/span><\/span><\/h2>\n<p>\u00a0<\/p>\n<p><strong><span><span>LO10\u20136<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span><span>The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a fair value of $150,000. Bronco paid the owner of the equipment $10,000 to complete the exchange which has commercial substance.<\/span><\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span>E 10\u201318: Nonmonetary exchange<\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span>LO10\u20136<\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span>[This is a variation of the previous exercise.]<\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span>Required:<\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><strong><span>Assume the same facts as in <\/span><\/strong><span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/devry.vitalsource.com\/books\/0077831136\/content\/id\/BE10-17\"><strong><span><span>Exercise 10\u201317<\/span><\/span><\/strong><\/a><\/span><strong><span> except that Bronco <em>received<\/em> $10,000 from the owner of the equipment to complete the exchange.<\/span><\/strong><\/p>\n<p>\u00a0<\/p>\n<ul>\n<li><strong><span>1. What is the fair value of the equipment? <\/span><\/strong><\/li>\n<li><strong><span>2. Prepare the journal entry to record the exchange. <\/span><\/strong><\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<p><span><span>\u00a0<\/span><\/span><\/p>\n<p>\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Week 1 Homework Solutions \u00a0 Exercises E10-1, E10-8 &amp; E10-14, and E10-18 \u00a0 Exercise 10-1 \u00a0 E 10\u20131: Acquisition costs; land and building \u00a0 LO10\u20131 \u00a0 On March 1, 2013, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-47449","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/47449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=47449"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/47449\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=47449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=47449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=47449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}