Presented below is information related to Cullumber Company. 1. On July 6, Cullumber Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land $200,000 Buildings 600,000 Equipment 400,000 Total $1,200,000 Cullumber Company gave 12,000 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the purchase of the property. 2. Cullumber 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 $168,000 Construction of bases for equipment to be installed later 216,000 Driveways and parking lots 195,200 Remodeling of office space in building, including new partitions and walls 257,600 Special assessment by city on land 28,800 3. On December 20, the company paid cash for equipment, $416,000, subject to a 2% cash discount, and freight on equipment of $16,800. Prepare entries on the books of Cullumber 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.) No. Account Titles and Explanation Debit Credit 1. 2. 3.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Presented below is information related to Cullumber Company.

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

Land		$200,000
Buildings		600,000
Equipment		400,000
Total		$1,200,000

Cullumber Company gave 12,000 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the purchase of the property.

2. Cullumber 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		$168,000
Construction of bases for equipment to be installed later		216,000
Driveways and parking lots		195,200
Remodeling of office space in building, including new partitions and walls		257,600
Special assessment by city on land		28,800

3. On December 20, the company paid cash for equipment, $416,000, subject to a 2% cash discount, and freight on equipment of $16,800.

Prepare entries on the books of Cullumber 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.)

No.	Account Titles and Explanation	Debit	Credit
1.




2.




3.

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