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question presented below is information related to flounder company 1 on july 6 flou 4277386


Presented below is information related to Flounder Company. 1. On July 6, Flounder Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land $435,000 Buildings 1,305,000 Equipment 870,000 Total $2,610,000 Flounder Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $198 per share on the date of the purchase of the property. 2. Flounder 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 $115,370 Construction of bases for equipment to be installed later 136,610 Driveways and parking lots 117,860 Remodeling of office space in building, including new partitions and walls 175,700 Special assessment by city on land 17,440 3. On December 20, the company paid cash for equipment, $277,100, subject to a 2% cash discount, and freight on equipment of $9,730. Prepare entries on the books of Flounder Company for these transactions. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)

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