Prepare journal entries for land, stock exchange, capital costs
Not what you're looking for?
S10-1
Following is activity related to Overland Company:
1. Land was given to the company by the State of Florida to use as a manufacturing facility site. The market value of the land at the time of the donation was $102,000.
2. Addition land and buildings were acquired in exchange for 15,000 shares of company stock. The property including land and buildings was appraised at $1,090,000. The appraisal applied $200,000 to the land and the remainder to the buildings. The stock is not publicly traded but sales in the prior year were for $75 per share and $68 per share.
3. An entry is needed to record materials, labor and overhead that are allocable to machinery constructed. These costs have been charged to the materials, labor and overhead manufacturing accounts.
Materials used $10,900
Factory supplies used 1,000
Direct labor used 12,100
Overhead that exceeded normal levels caused by construction 3,000
Fixed overhead rate applied to regular manufacturing operations
60% of direct labor costs
Cost to purchase this machinery from outside suppliers 35,000
Prepare journal entries for Overland Company to record the above transactions
Purchase this Solution
Solution Summary
The expert prepares journal entries for land, stock exchange and capital costs.
Solution Preview
ANSWERS
Item 1
DR: Land 102,000
CR: Donated ...
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Lean your Process
This quiz will help you understand the basic concepts of Lean.