Prepare entries on the books of rommel company

Assignment Help Accounting Basics
Reference no: EM131118101

Entries for Acquisition of Assets Presented below are information related to Rommel Company.

1. On July 6 Rommel Company acquired the plant assets of Studebaker Company, which had discontinued operations. The appraised value of the property is:

Land $400,000
Building 1,200,000
Machinery and equipment 800,000
Total $2,400,000
Rommel Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market value of $180 per share on the date of the purchase of the property.

2. Rommel Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building.

Repairs to building $105,000
Construction of bases for machinery to be installed later 135,000
Driveways and parking lots 122,000
Remodeling of office space in building, including new partitions and walls 
161,000
Special assessment by city on land 18,000

3. On December 20, the company paid cash for machinery, $280,000, subject to a 2% cash discount, and freight on machinery of $10,500. Prepare entries on the books of Rommel Company for these transactions. 

Reference no: EM131118101

Questions Cloud

Social media marketing strategist : As a social media marketing strategist what would have been your strategy & recommendations to the airlines in respect to this case. Be descriptive & provide valid reasoning.
Collected using two different groups of subjects : Assume the data in the previous problem were collected using two different groups of subjects: One group used their preferred hand and the other group used their non-preferred hand. Analyze the data and compare the results to those for the previou..
Departments and the former chief of accounting : The eight employees in Accounting will be assigned four each to the other two departments and the former chief of Accounting (Harry Plume) will be promoted and re-assigned to the Staff Advisory Council in another location by senior management. Har..
Participants threw darts at a target : Participants threw darts at a target. In one condition, they used their preferred hand; in the other condition, they used their other hand. All subjects performed in both conditions (the order of conditions was counterbalanced). Their scores are s..
Prepare entries on the books of rommel company : On December 20, the company paid cash for machinery, $280,000, subject to a 2% cash discount, and freight on machinery of $10,500. Prepare entries on the books of Rommel Company for these transactions.
New product and class of product : A whole new product and class of product. The forced Barnes and Noble to follow or die. They came up with the Nook to complete, doesnt seem like it worked. Borders is gone, I think Barnes and Nobles is next. What do you think? How long can they su..
Display a comic-book style text bubble on the screen : Synchronize the movement of one object to the movement of another
The results of six subjects on a memory test : Below are data showing the results of six subjects on a memory test. The three scores per subject are their scores on three trials (a, b, and c) of a memory task. Are the subjects get- ting better each trial? Test the linear effect of trial for th..
Dimensions for segmenting markets : Discuss three dimensions for segmenting markets and illustrate your response with an example.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Difference between liquidation and reorganization

What is bankruptcy? What is the difference between liquidation and reorganization? What is the main benefit of reorganization. What is a merger? How does a merger differ from other forms of acquisition.

  Fired upward at an angle to the horizontal

Fill in the blanks in the Lab Answer Sheet at the end of this lab. Submit this Lab Answer Sheet when all of the labs are completed.

  What might explain the fact that different accounting

what might explain the fact that different accounting standard-setters have developed accounting standards that are

  Cost of plant assets lo c1

Cost of plant assets LO C1

  Projecting profit margins into the future

Projecting profit margins into the future on the basis of past results would be most reliable when the company:

  How much will ubs lend subaru

Suppose Subaru agrees to repay $500 million at the end of 4 years. How much will UBS lend Subaru?

  Zimt ag presents its financial statements

Zimt AG presents its financial statements in accordance with US GAAP. In 2007, Zimt discloses a valuation allowance of $1,101 against total deferred tax assets of $19,201. In 2006, Zimt disclosed a valuation allowance of $1,325 against total defer..

  The city of shipley maintains an employee retirement fund a

the city of shipley maintains an employee retirement fund a single-employer defined benefit plan that provides annuity

  Explain the factors that should be considered when

explain the factors that should be considered when applying the conventional concept of depreciation to the

  What interest rate was earned

A $100,000 certificate of deposit held for 60 days is worth $101,133.33. To the nearest tenth of a percent, what interest rate was earned?

  Depreciation for the first year of the trucks useful life

Finx, Inc., purchased a truck for $35,000. The truck is expected to be driven 15,000 miles per year over a five-year period and then sold for approximately $5,000. Determine depreciation for the first year of the truck's useful life by the straigh..

  What is the cost of merchandise sold and cost

No inventory was on hand at the beginning of the month. What is the cost of merchandise sold and cost of ending inventory under the FIFO method for June?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd