eBook Show Me How Calculator Print Item Cost Concept On Febr

eBook Show Me How Calculator Print Item Cost Concept On February 3, Clairemont Repair Service extended an offer of $360,000 for land that had been priced for sale at $400,000. 0n February 28, Clatremont Repair Service accep ted the seller\'s counteroffer of $380,000. On October 23, the land was assessed at a Service was offered $450,000 for value of $390,000 for property tax purposes. On January 15 of the next year, Clairemont Repair the land by a national retail chain. At what value should the land be recorded in Clairemont Repair Service\'s records?

Solution

1. As per cost concept,land should be recorded at cost i.e $380,000 in the books of Clairemont repair services.

2.

A)As per accounting equation.

Assets = Owner\'s equity + liabilities

675000= owner\'s equity + 215000

Owner\'s equity = $460,000

B)675000 + 112300= Owner\'s equity +32000+21500

Therefore owner\'s equity =$540,300

As per chegg answering guidelines, first question should be answered.