Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $245,000; land improvements are appraised at $73,500; and a building is appraised at $171,500. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $245,000; land improvements are appraised at $73,500; and a building is appraised at $171,500. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $245.000; land improvements are appraised at $73,500; and a building is appraised at $171,500.
1. Allocate the total cost among the three assets.
2. Prepare the journal entry to record the purchase.
Transcribed Image Text:Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $245,000; land
improvements are appraised at $73,500; and a building is appraised at $171,500.
Required:
1. Allocate the total cost among the three assets.
2. Prepare the journal entry to record the purchase.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Allocate the total cost among the three assets. (Round your "Apportioned Cost" answers to 2 decimal places.)
Percent of Total
Appraised
Value
Land
Land improvements
Building
Totals
Appraised
Value
$
$
245,000
73,500
171,500
490,000
15%
60%
x Total Cost of
Acquisition
€ Required
$
Apportioned
Cost
0.00
Required 2 >
4
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