Exercise 10-2 (Static) Recording costs of assets LO C1 Cala Manufacturing purchases land for $390,000 as part of its plans to build a new plant. The company pays $33,500 to tear down an old building on the lot and $47,000 to fill and level the lot. It also pays construction costs of $1,452,200 for the new building and $87,800 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit

Exercise 10-2 (Static) Recording costs of assets LO C1 Cala Manufacturing purchases land for $390,000 as part of its plans to build a new plant. The company pays $33,500 to tear down an old building on the lot and $47,000 to fill and level the lot. It also pays construction costs of $1,452,200 for the new building and $87,800 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit

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 30BE: Acquisition Cost Desert State University installed a HD video board with an invoice price of...

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Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $14,000, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $280 discount. Transportation costs of $316 were paid by Rizio. The machine required mounting and power connections costing $968. Another $456 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $350 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded $ 0 0
Problem 26-11 (IAA) Paragon Company incurred the following costs during the eurrent year in relation to property, plant and equipmenț: 2,500,000 ' Cash paid for purchase of land Mortgage assumed on the land purchased, including interest accrued Realtor commission 1,000,000 300,000 50,000 Legal fees, realty taxes and documentation expenses Amount paid to relocate persons squatting on the property 100,000 Cost of tearing down an old building on the land to make room for construction of new building Salvage value of the old building demolished Cost of fencing the property after completion Amount paid to the contractor for the building constructed 5,000,000 Building permit fee Еxcacation Architect fée Interest that would have been earned had the money used during the period of construction been invested Invoice cost of machine acquired Freight, unloading and delivery charges Custom dutiés and other charges Allowances and hotel accommodation, paid to foreign technicians during installation…
2 Cala Manufacturing purchases land for $433,000 as part of its plans to build a new plant. The company pays $37,300 to tear down an old building on the lot and $55,139 to fill and level the lot. It also pays construction costs of $1,211,000 for the new building and $76,442 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. No A Transaction 1 Answer is complete but not entirely correct. Land Land improvements Building Cash General Journal ✪ ✪ Debit 433,000 168,581 1,211,000 Credit 1,812,581
QS 8-1 (Algo) Cost of plant assets LO C1 Kegler Bowling buys scorekeeping equipment with an invoice cost of $170,000. The electrical work required for the installation costs $17,850. Additional costs are $3,570 for delivery and $12,250 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,650 Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Costs Invoice cost Electrical work required for installation Delivery costs Sales tax Repair costs Total recorded cost Amount $ 170,000 17,850 3,570 12,250 1,650 Included or Excluded Account
Exercise 10-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $13,400, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $134 discount. Transportation costs of $303 were paid by Rizio. The machine required mounting and power connections costing $926. Another $437 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $320 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
FE17 Revson Corporation purchased land adjacent to its plant to improve access for trucks makingdeliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $55,000;broker’s fees, $6,000; title search and other fees, $5,000; demolition of an old building on theproperty, $5,700; grading, $1,200; digging foundation for the road, $3,000; laying and pavingdriveway, $25,000; lighting $7,500; signs, $1,500.List the items and amounts that should be included in the Land account
Plant Assets, Natural Re > Exercises E10-17 Determining the cost of assets Lawson Furniture purchased land, paying $65,000 cash and signing a $250,000 note pavable. In addition, Lawson paid delinquent property tax of $5,000, title insurance costing $4,000, and $9,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $400,000. It also paid $54.000 for a fence around the property, $12,000 for a sign near the entrance, and $8,000 for special lighting of the grounds. Requirements 1. Determine the cost of the land, land improvements, and building. 2. Which of these assets will Lawson depreciate?
Required information Problem 10-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A (Algo) Part 2 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry worksheet
Required information Problem 10-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A (Algo) Part 3 . Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $20,000 cash and (b) it is old for $80,000 cash. View transaction list Journal entry worksheet
Required information Problem 10-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A (Algo) Part 1 Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. View transaction list Journal entry worksheet
For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. a530.000 annual cost of routine repair and maintenance expenditures for a fleet of delivery vehides b. $12.000,000 cost to develop a coal mine, from which an estimated 1 million tons of coal can be edracted e$248,000 cost to replace the roof on a building d. $140,000 cost of a radio and television advertising campaign to introduce a new product line. e58.000 cost of grading and leveling land so that a building can be constructed.
Check my w Exercise 10-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $405,405 for real estate with land, land improvements, and a building. Land is appraised at $243,000, land improvements are appraised at $108.000; and the building is appraised at $189,000. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Comptete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. (Round your "Apportioned Cost" answens to 2 decimal places.) Appraised Value Percent of Total Appraised Value Total Cost of Acquisition - Apportioned Cost 243.000 108 000 Land Land improvements