Question - Presented below is information related to Cheyenne Company.
1. On July 6, Cheyenne 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
Cheyenne 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. Cheyenne 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.
Prepare entries on the books of Cheyenne Company for these transactions.