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P 10-51_Bridges Wholesale Company_Journal entries and Computations




Question;Bridges Wholesale Company;incurred the following costs in 2015 for a warehouse acquired on July 1, 2015;the beginning of its fiscal year;Cost;of land....... $132,000 Landscaping..... $31,000;Cost;of building..... $528,000 Property tax for period prior to;acquisition..... $10,000;Remodeling;and repairs prior to occupancy $58,200 Real;estate commission...... $40,000;Escrow;fee.... $ 12,000;The company signed a;non-interest-bearing note for on July 1, 2015. The implicit interest rate is;compounded semiannually. Payments of are to be made semiannually beginning;December 31, 2015, for 10 years.;Instructions;Give the required journal entries to record;(1);the acquisition of the land and building (assume that cash is paid to equalize;the cost of the assets and the present value of the note) and;(2);the first two semiannual payments, including amortization of note discount.


Paper#37328 | Written in 18-Jul-2015

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