On May 5, 2014, Knottinghill Company 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, 2014, assuming the following additional details:
Prorate depreciation based on the number of months the asset has been in use.

Question

On May 5, 2014, Knottinghill Company 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, 2014, 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, 2014, Knottinghill Company 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, 2014, assuming the following additional details:
  Prorate depreciation based on the number of months the asset has been in use.

On May 5, 2014, Knottinghill Company Purchased a Property for $400,000