User Account

All Pages

Record the journal entry for the purchase of the assets

Assignment Help Financial Accounting
Reference no: EM132701941

Martin Health Associates buys an existing medical practice for $450,000 total cost using $50,000 cash and a $400,000 loan. Fair value of the physical assets per the appraisal is as follows:

Land 190,000

Building 115,000

Equipment 110,000

Vehicle 85,000

Total 500,000

Question 1: What should the amount recorded for each of the asset categories be using the above information?

Question 2: Record the journal entry for the purchase of the assets using cash and a bank loan

Question 3: Assuming the same fair value of assets of $500,000, they paid $600,000 for the assets - how would the excess payment be accounted for?

Reference no: EM132701941

Questions Cloud

Explain primary recommendations regarding passwords : An IT Security consultant has made three primary recommendations regarding passwords: such as common names, real words, numbers only.
Which example of a cash inflow from operating activities is : Under the direct and indirect methods of reporting the statement of cash flows, only? An example of a cash inflow from operating activities is
Methanol and toluene are flammable liquids : Methanol and toluene are flammable liquids whose vapor pressures at 68ºF (20ºC) are 96 and 22 mmHg, respectively.
Prepare journal entries to record the repairs : Prepare journal entries to record the repairs made under warranty and estimated warranty expense for the year
Record the journal entry for the purchase of the assets : Assuming the same fair value of assets of $500,000, they paid $600,000 for the assets - how would the excess payment be accounted for?
How can it bring benefits to an organization : How can IT bring benefits to an organization in the areas of workflow, communication, and collaboration?
Calculate the correct value of creditors to be reported : At 31 October the balance on the payables control account in Mark's general ledger is $79,850. Calculate the correct value of creditors to be reported
Research professional salesperson best practices : Research Professional Salesperson Best Practices. Identify at least 10 and provide a detailed description for each.
How many shares must be sold : The Clifford Corporation has announced a rights offer to raise $88 million. If the subscription price is set at $11 per share, how many shares must be sold?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Salvage value-using double the straight-line rate

Hinshaw Company purchased a new machine on October 1, 2014, at a cost of $85,120. The company estimated that the machine has a salvage value of $7,490. The machine is expected to be used for 62,110 working hours during its 8-year life. Declining-bala..

  Mesa manufacturing company

Beth R. Jordan lives at 2322 Skyciew Road, Mesa, AZ 85201.She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201.....

  Prepare journal entries to record the transactions

The following transactions were selected from the records of Evergreen Company: Prepare journal entries to record the transactions, assuming Evergreen Company uses a perpetual inventory system.

  How the research and development expenses

How the research and development expenses, the machine and the grant above should be accounted for in the financial statements for 2019 and 2020.

  Explain country risk via the use of examples

Explain via the use of examples, the Country (i.e., Sovereign) risk commercial bank risks as well as their impact on commercial banking activities

  Purchased equipment with a fair value

Darvin company purchased equipment with a fair value of 100,000 on a 6 percent, 4 year instalment note. What would Darvin's annual payment on the note, assuming that payments are made at the end of the year?

  Prepare the journal entry to record bad debt expense

Novak Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $155,400 Allowance for Doubtful Accounts $3,890 Sales Revenue (all on credit) 800,700 Sales Returns and Allowances 50,330 Prepare the journal en..

  What is total cash outflow

what is total cash outflow through maturity total borrowing cost over life if bond interest expense for the year amortization for the year unamortized premies as of december bond carrying value as of december

  Identify two business actions cathy might take to improve

Identify two business actions Cathy might take to improve cash flows from operations. Comment on the ethics and possible consequences of Cathy.

  Financial statements on liquidation basis of accounting

Alex Curtis, during the audit of Landon Company, has determined that the company will be preparing its financial statements on a liquidation basis of accounting due to the fact that management has decided to liquidate Landon Company at the end of the..

  How changes have affected corporations and accounting firms

Find and Compare and contrast the views of management and accountants regarding the changes required by the Sarbanes-Oxley Act on internal controls

  Record the transactions for western co in general journal

Record the transactions for Western Co. in general journal.May 1 Received a $ 7,5001-year,10%note in exchange for Andy Richter outstanding accounts recevable

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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