Selected:

Siegle Company exchanged 400 shares of Guinn Company

$15.99

$15.99

Siegle Company exchanged 400 shares of Guinn Company 1. Horner Company buys a delivery van with a list price of $30,000. The dealer grants a 15% reduction in list price and an additional 2% cash discount on the net price if payment is made in 30 days. Sales taxes amount to $400 and the company paid an extra $300 to have a special horn installed. What should be the recorded cost of the van? a. $24,990. b. $25,645. c. $25,690. d. $25,390. 2. On August 1, 2010, Hayes Corporation purchased a new machine on a deferred payment basis. A down payment of $3,000 was made and 4 monthly installments of $2,500 each are to be made beginning on September 1, 2010. The cash equivalent price of the machine was $12,000. Hayes incurred and paid installation costs amounting to $500. The amount to be capitalized as the cost of the machine is a. $12,000. b. $12,500. c. $13,000. d. $13,500. 3. On April 1, Mooney Corporation purchased for $855,000 a tract of land on which was located a warehouse and office building. The following data were collected concerning the property: Current Assessed Valuation Vendor’s Original Cost Land $300,000 $280,000 Warehouse 200,000 180,000 Office building 400,000 340,000 $900,000 $800,000 What are the appropriate amounts that Mooney should record for the land, warehouse, and office building, respectively? a. Land, $280,000; warehouse, $180,000; office building, $340,000. b. Land, $300,000; warehouse, $200,000; office building, $400,000. c. Land, $299,250; warehouse, $192,375; office building, $363,375. d. Land, $285,000; warehouse, $190,000; office building, $380,000. 4. On August 1, 2010, Mendez Corporation purchased a new machine on a deferred payment basis. A down payment of $2,000 was made and 4 annual installments of $6,000 each are to be made beginning on September 1, 2010. The cash equivalent price of the machine was $23,000. Due to an employee strike, Mendez could not install the machine immediately, and thus incurred $300 of storage costs. Costs of installation (excluding the storage costs) amounted to $800. The amount to be capitalized as the cost of the machine is a. $23,000. b. $23,800. c. $24,100. d. $26,000. 5. Siegle Company exchanged 400 shares of Guinn Company common stock, which Siegle was holding as an investment, for equipment from Mayo Company. The Guinn Company common stock, which had been purchased by Siegle for $50 per share, had a quoted market value of $58 per share at the date of exchange. The equipment had a recorded amount on Mayo’s books of $21,000. What journal entry should Siegle make to record this exchange? a. Equipment 20,000 Investment in Guinn Co. Common Stock 20,000 b. Equipment 21,000 Investment in Guinn Co. Common Stock 20,000 Gain on Disposal of Investment 1,000 c. Equipment 21,000 Loss on Disposal of Investment 2,200 Investment in Guinn Co. Common Stock 23,200 d. Equipment 23,200 Investment in Guinn Co. Common Stock 20,000 Gain on Disposal of Investment 3,200 Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Siegle Company exchanged 400 shares of Guinn Company

Reviews

There are no reviews yet.

Be the first to review “Siegle Company exchanged 400 shares of Guinn Company”

Your email address will not be published. Required fields are marked *

Close Menu
×
×

Cart