Posted: February 11th, 2015

Intermediate Accounting

Paper, Order, or Assignment Requirements

Task 3.1
Acquisition and Valuation of fixed assets
Instructions:
1. After reading the study material for this module works the following exercises from chapter 10 of the E-book Kieso, DE, Weygandt, JJ, & Warfield, TD (2010). Intermediate accounting (13th ed.). Hoboken, NJ: Wiley.
a. BE10-5 (p.517) (Purchase of a truck, 4 points)
b. BE10-7 (p.517) (Acquisition of land, 4 points)
c. BE10-8 (p.517) (Exchange active, 4 points)
d. E10-11 (p.523) (purchase of equipment, 12 points)
2. You must submit answers to the exercises in full.
3. Save the task in Word or Excel format

Task 3.1

Acquisition and Valuation of fixed assets
Instructions:
1. After reading the study material for this module works the following exercises from chapter 10 of the E-book Kieso, DE, Weygandt, JJ, & Warfield, TD (2010). Intermediate accounting (13^th ed.). Hoboken, NJ: Wiley.
a. BE10-5 (p.517) (Purchase of a truck, 4 points)
b. BE10-7 (p.517) (Acquisition of land, 4 points)
c. BE10-8 (p.517) (Exchange active, 4 points)
d. E10-11 (p.523) (purchase of equipment, 12 points)
2. You must submit answers to the exercises in full.
3. Save the task in Word or Excel format

BE10-5 Garcia Corporation purchased a truck by issuing an $80,000, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck.

BE10-7 Fielder Company obtained land by issuing 2,000 shares of its $10 par value common stock. The land was recently appraised at $85,000. The common stock is actively traded at $40 per share. Prepare the journal entry to record the acquisition of the land.

BE10-8 Navajo Corporation traded a used truck (cost $20,000, accumulated depreciation $18,000) for a small computer worth $3,300. Navajo also paid $500 in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.)

BE10-11 Cheng Company traded a used truck for a new truck. The used truck cost $30,000 and has accumulated depreciation of $27,000. The new truck is worth $37,000. Cheng also made cash payment of $36,000. Prepare Cheng’s entry to record the exchange.(The exchange lacks commercial substance.)