Rodriguez Company pays $310,000 for real estate plus $16,430 in closing costs. T

Question

Rodriguez Company pays $310,000 for real estate plus $16,430 in closing costs. The real estate consists of land appraised at $216,000; land improvements appraised at $48,000; and a building appraised at $216,000. Required: 1. Allocate the total cost among the three purchased assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required Required Allocate the total cost among the three purchased assets. (Round your "Apportioned Cost" 2 answers to 2 decimal places.) Percent of Total Appraised Total Value AppraiseCost f Apportioned Cost Value Acquisitio Land Land improvements Building Totals

Explanation / Answer

Solution:-

1. Allocate the total cost among the three purchased assets:-

Explanation:-

Pruchase price 310,000 + Closing cost 16,430 = Total cost of acquisition 326,430

For percentage use total cost divided by appraised value 216,000 / 480,000 = 45%.........

2. Prepare the journal entry to record the purchase:-

Note:-  As per Chegg guidelines if more than one question is posted than will liable to answer only 1 question.

Please Rate or comment if you have any doubt regarding this solution.

Appraised value Percent of total appraised value * Total cost of acquisition = Approtioned cost Land 216,000 45% 326,430 146,893.50 Land improvements 48,000 10% 326,430 32,643 Building 216,000 45% 326,430 146,893.50 Totals 480,000 100% 326,430

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