Question
In: Accounting
A company acquired a building, paying a portion of the purchase price in cash and issuing...
A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance. In a statement of cash flows, what amount is included in investing activities for the above transaction?
Select one:
a. Cash payment
b. Acquisition price
c. Zero
d. Mortgage amount
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Purchased a building by paying $50,000 cash and issuing a $450,000 mortgage note payable
Purchased a building by paying $50,000 cash and issuing a $450,000
mortgage note payable
IBM acquired land and a building for a purchase price of $2,290,000. Before purchasing, they paid...
IBM acquired land and a building for a purchase price of
$2,290,000. Before purchasing, they paid $30,000 for an appraisal
that determined the fair value of the land as $756,000 and the
building as $1,944,000. Additionally, IBM incurred a closing cost
of $180,000 to complete the transfer. Two days after completion of
the transfer, the building had a leak that required $75,000 worth
of damage to be repaired.
What is the acquisition cost that would be capitalized,
individually, to the...
On July 1, 2020, Riverbed Corporation purchased Young Company by paying $256,900 cash and issuing a...
On July 1, 2020, Riverbed Corporation purchased Young Company by
paying $256,900 cash and issuing a $132,000 note payable to Steve
Young. At July 1, 2020, the balance sheet of Young Company was as
follows.
Cash
$51,400
Accounts payable
$204,000
Accounts receivable
91,500
Stockholders’ equity
241,100
Inventory
105,000
$445,100
Land
40,400
Buildings (net)
75,300
Equipment (net)
69,500
Trademarks
12,000
$445,100
The recorded amounts all approximate current values except for land
(fair value of $62,200), inventory (fair value of $126,400), and...
On July 1, 2017, Blue Corporation purchased Crane Company by paying $225,000 cash and issuing a...
On July 1, 2017, Blue Corporation purchased Crane Company by
paying $225,000 cash and issuing a $168,750 note payable to Jay
Crane. At July 1, 2017, the balance sheet of Crane Company was as
follows.
Cash
$26,700
Accounts payable
$219,500
Accounts receivable
89,700
Stockholders’ equity
219,200
Inventory
122,700
$438,700
Land
31,500
Buildings (net)
71,500
Equipment (net)
74,900
Trademarks
21,700
$438,700
The recorded amounts all approximate current values except for land
(fair value of $58,100), inventory (fair value of $131,500), and...
Vernon Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing...
Vernon Manufacturing Company was started on January 1, 2018,
when it acquired $83,000 cash by issuing common stock. Vernon
immediately purchased office furniture and manufacturing equipment
costing $9,100 and $24,700, respectively. The office furniture had
an eight-year useful life and a zero salvage value. The
manufacturing equipment had a $3,400 salvage value and an expected
useful life of three years. The company paid $11,500 for salaries
of administrative personnel and $15,800 for wages to production
personnel. Finally, the company paid...
Baird Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing...
Baird Manufacturing Company was started on January 1, 2018, when
it acquired $83,000 cash by issuing common stock. Baird immediately
purchased office furniture and manufacturing equipment costing
$9,100 and $35,900, respectively. The office furniture had an
eight-year useful life and a zero salvage value. The manufacturing
equipment had a $3,900 salvage value and an expected useful life of
four years. The company paid $11,500 for salaries of administrative
personnel and $15,700 for wages to production personnel. Finally,
the company paid...
Campbell Manufacturing Company was started on January 1, 2018, when it acquired $89,000 cash by issuing...
Campbell Manufacturing Company was started on January 1, 2018,
when it acquired $89,000 cash by issuing common stock. Campbell
immediately purchased office furniture and manufacturing equipment
costing $7,700 and $26,500, respectively. The office furniture had
an 8-year useful life and a zero salvage value. The manufacturing
equipment had a $4,000 salvage value and an expected useful life of
three years. The company paid $11,600 for salaries of
administrative personnel and $15,100 for wages to production
personnel. Finally, the company paid...
Vernon Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing...
Vernon Manufacturing Company was started on January 1, 2018,
when it acquired $83,000 cash by issuing common stock. Vernon
immediately purchased office furniture and manufacturing equipment
costing $9,100 and $24,700, respectively. The office furniture had
an eight-year useful life and a zero salvage value. The
manufacturing equipment had a $3,400 salvage value and an expected
useful life of three years. The company paid $11,500 for salaries
of administrative personnel and $15,800 for wages to production
personnel. Finally, the company paid...
Rooney Manufacturing Company was started on January 1, 2018, when it acquired $75,000 cash by issuing...
Rooney Manufacturing
Company was started on January 1, 2018, when it acquired $75,000
cash by issuing common stock. Rooney immediately purchased office
furniture and manufacturing equipment costing $9,100 and $26,600,
respectively. The office furniture had an eight-year useful life
and a zero salvage value. The manufacturing equipment had a $3,500
salvage value and an expected useful life of three years. The
company paid $11,500 for salaries of administrative personnel and
$15,400 for wages to production personnel. Finally, the company
paid...
Baird Manufacturing Company was started on January 1, 2018, when it acquired $84,000 cash by issuing...
Baird Manufacturing Company was started on January 1, 2018, when
it acquired $84,000 cash by issuing common stock. Baird immediately
purchased office furniture and manufacturing equipment costing
$9,800 and $35,100, respectively. The office furniture had an
eight-year useful life and a zero salvage value. The manufacturing
equipment had a $3,500 salvage value and an expected useful life of
four years. The company paid $11,700 for salaries of administrative
personnel and $15,300 for wages to production personnel. Finally,
the company paid...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- More and more adults are considering commuting to work by bicycle rather than car, but few...
- Please answer these questions Data Processing and Analysis using python. Thank you In statistics, an outlier...
- Write a function file that accepts each of the four vectors as inputs. The function file...
- Kant says that to act morally is to act out of duty. How does this differ...
- Suppose you are trying to determine the capacity (in gallons) of the gas tank needed on...
- List the arithmetic operators used in BASIC and state their priorities of execution in a statement....
- Describe the espoused values of a company you have worked for (or been exposed to -...
ADVERTISEMENT