On May 5, 2021 Vermilion River Adventures purchased a property for $ 400,000 cash. The property included the following long-lived assets: Instructions
a) Give the journal entry to allocate the purchase price between the above assets. Round all amounts to the nearest dollar, if necessary.
b) Prepare a compound journal entry to record depreciation of the long-lived assets on December 31, 2021, assuming the following additional details:

Prorate depreciation based on the number of months the asset has been in use.

Question

On May 5, 2021 Vermilion River Adventures purchased a property for $ 400,000 cash. The property included the following long-lived assets:  Instructions 
a) Give the journal entry to allocate the purchase price between the above assets. Round all amounts to the nearest dollar, if necessary.
b) Prepare a compound journal entry to record depreciation of the long-lived assets on December 31, 2021, assuming the following additional details:
  
Prorate depreciation based on the number of months the asset has been in use.

Quizplus · Accepted Answer

The Answer of On May 5, 2021 Vermilion River Adventures purchased a property for $ 400,000 cash. The property included the following long-lived assets:  Instructions 
a) Give the journal entry to allocate the purchase price between the above assets. Round all amounts to the nearest dollar, if necessary.
b) Prepare a compound journal entry to record depreciation of the long-lived assets on December 31, 2021, assuming the following additional details:
  
Prorate depreciation based on the number of months the asset has been in use.

On May 5, 2021 Vermilion River Adventures Purchased a Property