Prepare entries on the books of headland company

Assignment Help Accounting Basics
Reference no: EM131699767

Exercise - Presented below is information related to Headland Company.

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

Land

$396,000

Buildings

1,188,000

Equipment

792,000

   Total

$2,376,000

Headland Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $252 per share on the date of the purchase of the property.

2. Headland Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.)

Repairs to building

$99,590

Construction of bases for equipment to be installed later

126,240

Driveways and parking lots

130,410

Remodeling of office space in building, including new partitions and walls

171,890

Special assessment by city on land

18,330

3. On December 20, the company paid cash for equipment, $270,400, subject to a 2% cash discount, and freight on equipment of $10,800.

Prepare entries on the books of Headland Company for these transactions.

Reference no: EM131699767

Questions Cloud

Discuss the effectiveness of an herbal compound : Herbal medicine. Scientists at a major pharmaceutical firm conducted an experiment to study the effectiveness of an herbal compound to treat the common cold.
Why you believe the advertisers have used the fallacy : Describe the ad, identify the fallacy being used, and then explain why you believe that the advertisers have used that fallacy.
Identify an experiment or risk the aviation organization : Identify an experiment or risk the aviation organization has recently taken (within the last five years). Determine the prioritizing, assigning
Define database of customers and sales information : Tracking sales. A start-up company is building a database of customers and sales information. For each customer, it records name, ID number.
Prepare entries on the books of headland company : On July 6, Headland Company acquired the plant assets of Doonesbury Company, Prepare entries on the books of Headland Company for these transactions
Explain crafting a compensation and benefits plan : Explain Crafting a Compensation and Benefits Plan. Compare salary and benefit packages of at least three comparable organizations in the same industry.
Determine type of vehicle and age : Cars. A survey of autos parked in student and staff lots at a large university recorded the make, country of origin, type of vehicle (car, van, SUV, etc.).
Calculate monthly purchases august to november : Calculate Monthly Purchases August to November - Calculate Payments Made for Inventory (purchases Paid in)August to October and after October
Government intervention in the many modes of transportation : There are many rationales for government intervention in the many modes of transportation. Discuss these concepts and explain if you agree or disagree and why.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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