Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)
Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 33BE: Expenditures After Acquisition Listed below are several transactions: a. Paid $80 cash to replace a...
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Question
Novak Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment.
Abstract company’s fee for title search | $1,066 | |||
Architect’s fees | 6,499 | |||
Cash paid for land and dilapidated building thereon | 178,350 | |||
Removal of old building |
$41,000
|
|||
Less: Salvage |
11,275
|
29,725 | ||
Interest on short-term loans during construction | 15,170 | |||
Excavation before construction for basement | 38,950 | |||
Machinery purchased (subject to 2% cash discount, which was not taken) | 112,750 | |||
Freight on machinery purchased | 2,747 | |||
Storage charges on machinery, necessitated by noncompletion of | ||||
building when machinery was delivered | 4,469 | |||
New building constructed (building construction took 6 months from | ||||
date of purchase of land and old building) | 994,250 | |||
Assessment by city for drainage project | 3,280 | |||
Hauling charges for delivery of machinery from storage to new building | 1,271 | |||
Installation of machinery | 4,100 | |||
Trees, shrubs, and other landscaping after completion of building | ||||
(permanent in nature) | 11,070 |
Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)
Land
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Buildings
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Machinery and Equipment
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Other
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|||||
---|---|---|---|---|---|---|---|---|
Abstract fees
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$enter a dollar amount
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$enter a dollar amount
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$enter a dollar amount
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$enter a dollar amount
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||||
Architect’s fees
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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||||
Cash paid for land and old building
|
enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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||||
Removal of old building
|
enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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Interest on loans during construction
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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Excavation before construction
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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Machinery purchased
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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Freight on machinery
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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||||
Storage charges caused by noncompletion of building
|
enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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New building
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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Assessment by city
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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Hauling charges - machinery
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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Installation - machinery
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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Landscaping
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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enter a dollar amount
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||||
$enter a total amount
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$enter a total amount
|
$enter a total amount
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$enter a total amount
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