Question

Exercise 10-13

Presented below is information related to Nash Company.

1. On July 6, Nash Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is:

Land		$367,000
Buildings		1,101,000
Equipment		734,000
Total		$2,202,000

Nash Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $188 per share on the date of the purchase of the property.

2. Nash 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		$112,950
Construction of bases for equipment to be installed later		125,200
Driveways and parking lots		131,560
Remodeling of office space in building, including new partitions and walls		165,140
Special assessment by city on land		16,740

3. On December 20, the company paid cash for equipment, $269,700, subject to a 2% cash discount, and freight on equipment of $11,200.

Answer 1