Exercise NO: 13

Presented below is information related to Zonker Company.\n1. On July 6, Zonker Company acquired the plant assets of Doonesbury Company, which had disc

Presented below is information related to Zonker Company.

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

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Land $ 400,000

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Buildings 1,200,000

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Equipment 800,000

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Total $2,400,000

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Zonker Company gave 12,500 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.

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2. Zonker Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building.

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Repairs to building $105,000

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Construction of bases for equipment to be installed later 135,000

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Driveways and parking lots 122,000

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Remodeling of offi ce space in building, including new partitions and walls 161,000

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Special assessment by city on land 18,000

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3. On December 20, the company paid cash for equipment, $260,000, subject to a 2% cash discount, and freight on equipment of $10,500.

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Instructions

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Prepare entries on the books of Zonker Company for these transactions.

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