Question - Presented below is information related to Oriole Company.
1. On July 6, Oriole Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is:
Land $389,000
Buildings 1,167,000
Equipment 778,000
Total $2,334,000
Oriole Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $225 per share on the date of the purchase of the property.
2. Oriole 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 $95,850
Construction of bases for equipment to be installed later 137,160
Driveways and parking lots 123,590
Remodeling of office space in building, including new partitions and walls 173,080
Special assessment by city on land 18,650
3. On December 20, the company paid cash for equipment, $278,200, subject to a 2% cash discount, and freight on equipment of $11,110.
Prepare entries on the books of Oriole Company for these transactions.