Answer:
ABC Ranch & Farm
a. Journal Entries:
Jan. 1, 2019:
Debit Notes receivable (Mills Farm & Fleet) $48,000
Credit Refund liability ($48,000 * 5%) $2,400
Credit Sales revenue $45,600
To record the sale of 40 augers for a 6-month note at 12% interest.
January 1, 2019:
Debit Cost of goods sold $30,400
Credit Inventory $30,400
To record the cost of goods sold, less estimated return of 5%.
b. Journal Entries:
August 10, 2019:
Debit Accounts Receivable $57,600
Credit Sales revenue $57,600
To record the sale of 16 mini trenchers to a farm co-op.
August 10, 2019:
Debit Cost of goods sold $32,000
Credit Inventory $32,000
To record the cost of goods sold.
June 20, 2019:
Debit Cash Account $9,040
Credit Deferred Revenue $9,040
To record the receipt of the down payment.
October 1, 2019:
Debit Deferred Revenue $9,040
Credit Sales Revenue $9,040
To record revenue for goods sold.
Debit Cash Account $36,160
Credit Sales Revenue $32,051
Credit Service Revenue (Installation) $2,935
Credit Service Revenue (Maintenance) $1,174
To record the receipt of full payment for goods sold and installation and maintenance services.
December 31, 2019:
Debit Service Revenue (Maintenance) $1,076
Credit Deferred Revenue $1,076
To record the deferred revenue for maintenance.
Explanation:
A) Data and Calculations:
Item Standalone selling
Price (cost)
Mini -trencher $3,600 ($2,000)
Power fence hole auger $1,200 ($800)
Grain/ Hay dryer $14,000 ($11,000)
Sale of grain/hay dryers: Allocation of Contract
Price of $45,200
Sale revenue $14,000 * 3 = $42,000 $41,091 (42,000/46,200 * 45,200)
Installation fee $1,000 * 3 = 3,000 2,935 (3,000/46,200 * 45,200)
Maintenance fee for 3 years 1,200 1,174 (1,200/46,200 * 45,200)
Total $46,200 $45,200
June 20, Down payment ($45,200 * 20%) = $9,040
October 1, Full payment ($45,200 * 80%) = $36,160
Total payment $45,200
Maintenance fee:
Deferred Revenue (1,174*33/36) = $1,076
Maintenance fee revenue (1,174* 3/36) = $98
Which of these was the first government of the United States?
Group of answer choices
Constitution
Declaration of Independence
Articles of Confederation
Mayflower Compact
Answer:
Declaration of independence
Explanation:
I did that test yesterday lol
Answer:
3. Articles of Confederation
Explanation:
Hope this helps!
What are accountants most likely involved in as part of their daily activities within an organization?
A.
Preparing profit and loss statements.
B.
Working on distribution-related logistics.
C.
Contacting potential new retailers.
D.
Working on production schedules and shifts.
Answer:
What are accountants most likely involved in as part of their daily activities within an organization?
A.
Preparing profit and loss statements.
B.
Working on distribution-related logistics.
C.
Contacting potential new retailers.
D.
Working on production schedules and shifts.
Explanation:
Plato
"I before E, except after C, or when sounded like A, as in 'neighbor' or 'weigh' is an example of a mnemonic. What memory aid does this mnemonic use?"
A. Emotional connection
B. Visual images
C. Song or rhyme
Answer:
C. Song or rhyme
Explanation:
The memory aid is the testing technique in which the students are able to recall the things by practising them many times
Here in the given situation it is mentioned that I before E exclude C etc is an example of a mnemonic
So this represents the song or rhyme memory aid so that the mnemonic could be used as the following sequence is necessary in this
hence, the correct option is C.
Q5. You are launching the Pakistani street food cafe. Identify the marketing mix (four p’s) -
Answer and Explanation:
According to the given scneario, the identification of the marketing mix i.e. four p's are product, price, place and the promotion
1. Product: The product is food cafe. The main thing about the food is the taste, how it looks. The product should be attractive, full of taste.
2. Price: The price of the food for each type of product should be reasonable so that everyone could afford it. Also the price is depend upon the competitor price
3. Place: The place should be very attractful so that many customers could be come. It could be in river side or lake view. Also if the cafe provides the home delivery without any charges this things would attract most of the customers
4. Promotion: The promotion of the food cafe could be done in social sites, radios, newspaper so that the public at large could know about it
who is captain america
Answer:
a super hero that's part of marvel
Answer:
Captain America is a marvel character played by Chris Evans.
Explanation:
Captain America started out as a normal kinda scrawny teenager who joined the American Army during World War II. He was transformed into a super soldier and became an insanely fit and strong human being. He saved many people during the war, but unfortunately was frozen in ice for like 66 years. So, he became part of a group called the Avengers. Kind of like a vigilante group. And finally, he was able to go back in time and marry the woman of his dreams, and he retired from the avengers after, the time travel left him in his actual age, well into his 80's.
What were true about all the states of natures in Decision making under ignorance (hint: how likely was any one of them to happen
Answer: They would be treated equally
Explanation:
States of natures in decision making under ignorance would be treated equally, and as such they would be treated equally.
Poland Springs produces a variety of bottled water beverages, and as the market continues to show growth potential for new flavors and varieties of bottled water, the company should ________ its product lines
Answer:
Increase the depth of.
Explanation:
As the above case may be a product line can explain the variety in marketing and selection of a product and any commodity as the case may be and as the said company increases in growth, its product depth line should be increased. Therefore, a product line goal can be to maximize profits by positioning new products with the highest number of features or with the most cutting-edge individual features at the highest price point. And also you’ll be keeping a base product on sale as a lower-priced alternative
One of the benefit of this been set i.e product line; is to let potential customers know the particular product that will tend to fit their capability in many cases as the case may be in product selection.
Globalization forces small businesses to compete worldwide. The result of globalization is that operation manager (OM) or owner must do which of the following to stay competitive:
Answer:
- Making sure the cost of their asset management is as low as possible
- Maximize their product delivery
- Making sure that their price of operation is efficient
- making sure price of their product is competitive
Explanation:
Due to globalization, businesses are forced to compete on foreign markets that they might not be familiar with. In such situations, lowering cost of production while maintaining the quality of their products is the best thing that they can do to maintain a healthy profit margin. This can be done by lowering the cost that they need to make maintenance of their assets and minimizing the cost they need to acquire materials.
On top of lowering cost of production, they also need to provide better services and reasonable price range for the costumers. They need to put a good customer service call along with on time delivery to keep customers happy.
A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sells for $1,110. What is its yield to maturity (YTM)?
Answer:
YTM = 0.070616 or 7.0616% rounded off to 7.06%
Explanation:
The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,
YTM = [ ( C + (F - P / n)) / (F + P / 2) ]
Where,
C is the coupon paymentF is the Face value of the bondP is the current value of the bondn is the number of years to maturityCoupon payment = 1000 * 0.08 = 80
YTM = [ (80 + (1000 - 1110 / 20)) / (1000 + 1110 / 2)
YTM = 0.070616 or 7.0616% rounded off to 7.06%
Your goal is to earn an annual salary of $100,000 three years from now. You expect to increase your salary by 6.5 percent annually. How much do you need to earn this year if you are going to reach your goal?
a. $72,988.08
b. $82,784.91
c. $87,878.88
d. $84,363.13
Answer:
$87,878.88
Explanation:
Calculation How much do you need to earn this year
Using this formula
PV = FV/ (1 + r )^n
Where,
FV =Future Value=$100,000
PV = Present Value
r = rate of interest=6.5%
n= no of period=3 years
Let plug in the formula
PV = $100,000 / ((1 + 6.5%)^3)
PV = $82,784.91
Therefore the amount you need to earn this year will be $82,784.91
Now that you know about the different types of bank accounts, relate this information to your chosen career path. Write a paragraph explaining the type(s) of bank accounts that you would need in order to save enough money for college or training for your career. Your answer should address the following questions:
Do you already have a bank account? If so, which type(s), and how do you use them? If not, then how could you go about opening a bank account of your own?
After learning about the different types of bank accounts, which one do you think offers the best options for saving money for college, daily living expenses, and an emergency fund?
Define a bounced check, or a check returned for insufficient funds. Explain a circumstance in which someone might bounce a check (give an example), and create and discuss a plan so that this does not happen to you.
Answer:
I pay for my expenses using either my debit card or cash that I withdraw from the ATM. It is very rare that I write a check to pay for my purchases. If there is an emergency situation, I withdraw money from one of my certificates of deposit.
I want to be a physicist, and I plan to earn a graduate degree in physics from Harvard University. I don’t have enough money saved up to pay for my tuition, even though I have two certificates of deposit accounts and one savings account. This means that I will probably have to take a student loan from my bank. However, I do have sufficient money in my checking account to pay for my daily expenses.
A bounced check is a check that a person has written but cannot pay for due to insufficient funds. For example, a person might send a check for a credit card bill but the person’s bank account may not have sufficient balance to pay this amount. To avoid check bouncing, I’ll always try and remember a rough figure of the money in my account. Additionally, wherever possible, I will pay my bill either in cash or by debit card.
Explanation:
PLATO sample answer
A bank monetary base account is managed by a bank or other financial institution wherein the bank records financial transactions with customers.
Bank Account:We pay for all our purchases with a debit card or cash from an ATM. I rarely pay for things with a check. I can take money out of one of my certificates of deposit because I need it in an emergency.
We want to be a physicist and plan to study physics at Harvard University. Although I have two savings deposits and one savings account, I may not have enough money set aside to pay for my tuition. As a result, I'll most likely need to borrow money from my bank for a student loan. My term deposit, on the other hand, has enough cash to cover our everyday needs.The bounced check has been written but cannot be paid because of a lack of money. The person may, for example, submit an account to cover a credit card debt, yet his or her bank account may not have adequate funds to cover the payment. I'll try to remember a rough figure of the money in my account to avoid checks bouncing.I'll also pay my share in cash or through a debit card whenever feasible.Find out more about the bank account here:
brainly.com/question/16953228
20 Point
Which portion of the passage indicates that Neil’s prototype product requires many more changes?
1.(Neil created a robot that works on certain commands.) 2(However, the robot freezes and dismantles itself on hearing commands it does not recognize.) 3(While the robot recognizes most commands,) 4(it sometimes confuses similar-sounding commands.) 5(Neil spent five years creating this robot and invested all his savings in it.)
Answer:
Number 2 or Number 4.
Explanation:
On number 2, the robot freezes when it doesn't recognize the command. Obvious problem. On number 4, the robot confuses similar sounding commands. Also an obvious problem.
Answer:
2
Explanation:
A company has fixed costs of $50,000 while manufacturing a product that has variable costs of $4 per unit and sells for $14 per unit. The break-even point is:_____
Answer:
the break even point in units is 5,000 units
Explanation:
The computation of the break even point in units is shown below:
= Fixed cost ÷ contribution margin per unit
= Fixed cost ÷ (Selling price per unit - variable cost per unit)
= $50,000 ÷ ($14 - $4)
= $50,000 ÷ $10
= 5,000 units
hence, the break even point in units is 5,000 units
We simply applied the above formula so that the correct value could come
And, the same is to be considered
On November 19, Hayes Company receives a $15,000, 60-day, 10% note from a customer as payment on his account. What adjusting entry should be made on the December 31 year-end
Answer: A debit to Interest receivable at $175
A credit to Interest Revenue at $175
Explanation:
Interest revenue = Principal x rate s time ( from Nov 19 - December 31st)
=$15,000 x 10% x 42/360 ( taking days in a year = 360 days )
= $175
Adjusting Journal entry for Hayes Company on December 31st year end
Date Account titles Debit Credit
December 31st Interest receivable $175
Interest Revenue $175
Your catering business sells luncheons and dinners. Luncheons are $1,000 each, and dinners are $2,000 each. You sold 300 meals in total for revenue of $460,000. How many of each did you sell?
Answer:
140 luncheons, 160 dinners
Explanation:
The number of luncheons and dinners that are sold will be 140 and 160, respectively.
What is the solution to the equation?The allocation of weights to the important variables that produce the calculation's optimum is referred to as a direct consequence.
Your catering business sells luncheons and dinners. Luncheons are $1,000 each, and dinners are $2,000 each. You sold 300 meals in total for a revenue of $460,000.
Let 'x' be the number of Luncheons and 'y' be the number of dinners. Then the equations are given as,
x + y = 300 ...1
1,000x + 2,000y = 460,000 ...2
From equations 1 and 2, then we have
1,000(300 - y) + 2,000y = 460,000
300,000 - 1,000y + 2,000y = 460,000
1,000y = 160,000
y = 160
Then the value of 'x' is given as,
x + 160 = 300
x = 300 - 160
x = 140
The number of luncheons and dinners that are sold will be 140 and 160, respectively.
More about the solution of the equation link is given below.
https://brainly.com/question/545403
#SPJ6
On December 31, 2017, Extreme Fitness has adjusted balances of $800,000 in Accounts Receivable and $55,000 in Allowance for Doubtful Accounts. On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $10,000. What amount would the company report as its net accounts receivable on December 31, 2017
Answer:
Accounts receivable is $745,000
Explanation:
The company would report as net receivable, the total amount on accounts receivable minus total amount on the Allowance for uncollectible Accounts, which implies that the balance represent the amount of credit that will not be possible to collect again hence, the value represent balance on net accounts receivable.
Accounts receivable = Adjusted balance in accounts receivable - Allowance for doubtful accounts
= $800,000 - $55,000
= $745,000
Determine the market price of a $485,000, 10-year, 8% (pays interest semiannually) bond issue sold to yield an effective rate of 10%.
Answer:
Bond Price= $424,588.28
Explanation:
Giving the following information:
Face value= $485,000
Number of periods= 10*2= 20
Interest rate= 0.08/2= 0.04
YTM= 0.1/2= 0.05
To calculate the price of the bond, we need to use the following formula:
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 19,400*{[1 - (1.05^-20)] / 0.05} + [485,000/1.05^20)
Bond Price= 241,766.88 + 182,791.4
Bond Price= $424,588.28
____ are the goods and materials available for sale at the beginning of a period.
Raw materials
Ending inventory
Cost of goods sold
Beginning inventory
Answer:
Beginning inventory
Explanation:
Beginning inventory refers to the finished goods that are still in the business premises at the beginning of a fiscal year. They represent the finished products that the business was not able to sell in the past period. Beginning inventory becomes part of the inventory to be sold in the current year.
Other terms that describe beginning inventory are opening inventory, opening stock, and balance brought forward.
Answer:
D- Beginning inventory
Explanation:
On March 1, 2020, Parnevik Company sold goods to Goosen Inc. for $660,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,062,937 (an inputed rate of 10%). The goods have an inventory cost on Parnevik's books of $400,000.
Required:
Prepare the journal entries for Parnevik on (a) March 1, 2020, and (b) December 31, 2020.
Answer:
Parnevik Company
Journal Entries:
(a) March 1, 2020
Debit Notes Receivable (Goosen Inc.) $660,000
Credit Sales Revenue $660,000
To record the sale of goods in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,062,937.
Debit Cost of Goods Sold $400,000
Credit Inventory $400,000
To record the cost of goods sold.
(b) December 31, 2020:
Debit Interest Receivable (Goosen Inc.) $55,000
Credit Interest Revenue $55,000
To record the interest receivable for 10 months on the note.
Explanation:
The sale of goods will be recorded net of the interest. Interest Receivable from Goosen Inc. will be accumulated until when it is settled by Goosen Inc. at the end of the note's 5-year life. By that time, the interest must have accumulated to $402,937 compounded yearly.
Assume there are two countries (France and the United States) and two goods (Wine and Cheese). In France, labor productivity in Wine is 40 bottles per hour and 30 kilos per hour in Cheese. In the US, labor productivity in Wine is 12 bottles per hour and 12 kilos per hour in Cheese. Given this information, which country has the comparative advantage in Cheese
Answer:
United States
Explanation:
A comparative advantage results when a country's opportunity cost of producing good X is lower than the opportunity cost of producing good X in another country.
France
Opportunity cost of producing wine = 30/40 = 0.75 kilos of cheese
Opportunity cost of producing cheese = 40/30 = 1.33 bottles of wine
United States
Opportunity cost of producing wine = 12/12 = 1 kilo of cheese
Opportunity cost of producing cheese = 12/12 = 1 bottle of wine
France has a comparative advantage in the production of wine, and the US has a comparative advantage in the production of cheese.
A 37-year-old client experienced a perinatal loss 3 days ago. Which client characteristic would be communicated to the health care provider?
Answer:
Denial of the death
Explanation:
A loss of a Child to a mother is not usually acceptable at first to the mother. A woman at 37 who is advance has slimmer chance of getting pregnant and the woman at 37, having a pregnancy and lossing the baby is not easy to deal with. Parental loss and bereavement is really had for a 37 year old mother who at first may not accept the death of the child but proper care will bring the mother back to full consciousness.
A company that makes organic fertilizer has supplied the following data:
Bags produced and sold 200,000
Sales revenue $1,560,000
Variable manufacturing expense $660,000
Fixed manufacturing expense $448,000
Variable selling and administrative expense $180,000
Fixed selling and administrative expense $214,000
Net operating income $58,000
The company's unit contribution margin is closest to:______
a. 15,128 units
b. 16,1 units
c. 168,986 units
d. 100,444 units
Answer: $3.60
Explanation:
Contribution Margin is calculated by deducting variable expenses from the sales.
= Sales - Variable manufacturing expense - Variable selling and administrative expense
= 1,560,000 - 660,000 - 180,000
= $720,000
Unit Contribution Margin = 720,000/200,000 bags sold
= $3.60
The options are not for the Unit Contribution Margin.
(20) points
What could be the most likely result of Andrew offering credit facility to his customers?
A.
higher business losses
B.
lesser number of customers
C.
sell his goods below the market rates
D.
more competition
E.
customer loyalty
Answer:
you lied about the points but I'll be nice E
Advertising is an expenditure that ultimately must be justified in terms of its effect on sales and profits, yet most evaluations of advertising are in terms of the effects on consumer attitudes. How do you account for this apparent mismatch
Answer: Emphasis must be made on sales and profits, with the central position being how the customer perceive this goods
Explanation:
Advertisement should be aimed at improving sales and expanding the market for goods. Advertisement is not just to bring customers but also inform them on updates about products. Although customers attitude are needed, this helps the manufacturer or producer to know feedback on what the market is saying, as this cannot be ignored. Emphasis must be made on sales and profits, with the central position being how the customer perceive this goods.
The apparent mismatch is producers looking solely to what the customers are saying rather than considering profit, market expansion, sales, all surrounded by the customer as the focus
a. Distinguish between physical asset markets and financial asset markets. What’s the difference between spot markets and futures markets?
b. Distinguish between money markets and capital markets. What’s the difference between primary markets and secondary markets?
c. Differentiate between private and public markets. Why are financial markets essential for a healthy economy and economic growth?
Answer:
a. Physical assets are tangible, they can be touched, seen, used. They generally lose value over time because they depreciate. On the other hand, financial assets are intangible, they only exist because documents say so. Their price can change if interest rates change of if market conditions change.
Spot markets are markets where securities, currencies or commodities are traded immediately. While futures markets represent the trading of securities, currencies or commodities at a future date.
b. Money markets are where investors trades short term securities, while capital markets are where stocks, bonds and other long term securities are traded.
Primary markets exist only when securities are issued for the first time, e.g. an IPO. The vast majority of trading occurs in secondary markets since a security can literally be traded hundreds of times and all of these operations, except for the initial issuance, take place in secondary markets.
c. Public markets are all the trading markets where publicly traded corporations exchange or trade securities, and anyone can buy them, e.g. NYSE, NASDAQ, etc. Private markets only involve trading of privately held securities, e.g. stocks of closely held corporations. Only certain investors can trade with private securities, they are not available to the general public.
Financial markets basically receive savings from private households and businesses, and they transfer them (as investments) to other companies that need these resources to operate and grow. There is a direct relationship between healthy financial markets and economic development.
Your savings account is currently worth $1,200. The account pays 5 percent interest compounded annually. How much will your account be worth 6 years from now?
Answer:
$2,010
Explanation:
The future value of the savings account in 6 years can be computed using the below future value formula:
FV=PV*(1+r)^n
FV=unknown future amount
PV=current worth of the savings account=$1,200
r=annual interest rate=5%
n=number of years envisaged=6
FV=$1,500*(1+5%)^6
FV=$1,500*(1.05)^6
FV=$1,500*1.3400956
FV=$2,010
Mr. Ghani wants to deposit his savings of Rs. 50,000 in a bank which offers 8% interest compounded semi-annually to withdraw Rs. 2,500 at the end of each six months from the date of deposit. How many withdrawals will he or his heir (in case of his death) be able to make before the entire amount is exhausted
Answer:
How many withdrawals will he or his heir (in case of his death) be able to make before the entire amount is exhausted is explained below in detail explanation.
Explanation:
Let the no of withdrawals be n, then
Present value of n withdrawals = 50000
Interest rate per 6 months =8%/2 =4%
Withdraw amt/(Int rate)*(1-1/(1+interest)^n) = 50000
=> 2500/0.04*(1-1/1.04^n) = 50000
1/1.04^n = 0.2
1.04^n = 5
=> n = ln(5) / ln(1.04) = 41.03
Total 41 withdrawals of Rs.2500 can be made (with a smaller 42nd installment of less than Rs.2500)
Suppose that the demand curve for chairs in Euroland is given by QD = 800,000 − 6,000P, and that the supply curve is given by QS = 14,500P - 225,000. The equilibrium price is €50.
The government is thinking about imposing a tax of €2.46 on chairs.
The price paid by buyers after the tax is
Answer:
The price paid by buyers after the tax is €51.74.
Explanation:
QD = 800,000 − 6,000P .................. (1)
QS = 14,500P - 225,000 ................... (2)
P* = equilibrium price = €50
Substituting P* into equation (1) to obtain equilibrium quantity, Q*, we have
Q* = 800,000 − 6,000(50)
Q* = 800,000 - 300,000
Q* = 500,0000
Rewrite equation (1), we have:
6,000P = 800,000 - QD
P = (800,000 / 6,000) - (1 / 6,000)QD
P = 133.333333333333 - 0.000166666666666667QD ............ (3)
Rewrite equation (2), we have:
14,500P = QS + 225,000
P = (1 / 14,500)QS + (225,000 / 14.500)
P = 0.0000689655172413793QS + 15.5172413793103 .......... (4)
With tax of €2.46, equation (4) becomes:
P = 0.0000689655172413793QS + 15.5172413793103 + 2.46
P = 0.0000689655172413793QS + 17.9772413793103
Equating equations (3) and (4), and solve for new equilibrium quantity after tax, QT, we have:
133.333333333333 - 0.000166666666666667QT = 0.0000689655172413793QT + 17.9772413793103
133.333333333333 - 17.9772413793103 = 0.000166666666666667QT + 0.0000689655172413793QT
115.356091954023 = 0.000235632183908046QT
QT = 115.356091954023 / 0.000235632183908046
QT = 489,560
To obtain the price paid by buyers after the tax, PT, we substitute QT = 489,560 for QD is equation (3) as follows
PT = 133.333333333333 - 0.000166666666666667(489,560)
PT = 133.333333333333 - 81.5933333333335
PT = 51.74
Therefore, the price paid by buyers after the tax is €51.74.
Two sentences only. i'll give brainliest.
1. How important is elasticity in the analysis of the market?
2. What are tge relying factors of demand elasticity?
Answer:
(1)Elasticity is an important economic measure, particularly for the sellers of goods or services, because it indicates how much of a good or service buyers consume when the price changes. ... If the market price goes up, firms are likely to increase the number of goods they are willing to sell.
(2) Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes. High-priced products often are highly elastic because, if prices fall, consumers are likely to buy at a lower price
Company acquired land and buildings for $1,000,000. The land is appraised at $450,000 and the buildings are appraised at $800,000. The debits to the Land and Buildings accounts will be:
Answer:
Debit Land for $360,000
Debit Buildings for $640,000
Explanation:
The total acquisition cost has to be allocated based on the appraisal value of each of the Land and Buildings.
Therefore, the amount to be debited to the Land and Buildings accounts can be calculated as follows:
Total acquisition cost = $1,000,000
Land appraisal value = $450,000
Buildings appraisal value = $800,000
Total appraisal value = Land appraisal value + Buildings appraisal value = $450,000 + $800,000 = $1,250,000
Amount allocated to Land = (Land appraisal value / Total appraisal value) * Total acquisition cost = ($450,000 / $1,250,000) * $1,000,000 = $360,000
Amount allocated to Buildings = (Buildings appraisal value / Total appraisal value) * Total acquisition cost = ($800,000 / $1,250,000) * $1,000,000 = $640,000
Therefore, the debits to the Land and Buildings accounts will be the allocated amounts to each as follows:
Debit Land for $360,000
Debit Buildings for $640,000