E10-12 Below are transactions related to Impala Company. a. The City of

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    E10-12

    Below are transactions related to Impala Company.

    a. The City of Pebble Beach gives the company 5 acres of land as a plant site. The market value of this land is determined to be $90000.

    b. 14000 shares of common stock with a par value of $55 per share are issued in exchange for land and buildings. The property has been appraised at a fair
    market value of $900000 of which $186500 has been allocated to land and $713500 to buildings. The stock of Impala Company is not listed on any
    exchange but a block of 100 shares was sold by a stockholder 12 months ago at $71 per share and a block of 200 shares was sold by another stockholder 18
    months ago at $63 per share.

    c. No entry has been made to remove from the accounts for Materials Direct Labor and Overhead the amounts properly chargeable to plant asset accounts for
    machinery constructed during the year. The following information is given relative to costs of the machinery constructed.

    Materials used

    13320

    Factory supplies used

    920

    Direct labor incurred

    16820

    Additional overhead (over regular) caused by construction of machinery excluding factory supplies used 2610

    Fixed overhead rate applied to regular manufacturing operations 60% of direct labor cost

    Cost of similar machinery if it had been purchased from outside suppliers 44270

    Instructions:

    Prepare journal entries on the books of Impala Company to record these transactions. (List multiple debit/credit entries from largest to smallest amount
    e.g. 10 5 2.)

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