Indicate whether each of the following expenditures should be classified as land (L), land improvements (LI), buildings (B), equipment (E), or none of these (X). _____ 1. Parking lots _____ 2. Electricity used by a machine _____ 3. Interest on building construction loan _____ 4. Cost of trial runs for machinery _____ 5. Drainage costs _____ 6. Cost to install a machine _____ 7. Fences _____ 8. Unpaid (past) property taxes assumed _____ 9. Cost of tearing down a building when land and a building on it are purchased

Indicate whether each of the following expenditures should be classified as land (L), land improvements (LI), buildings (B), equipment (E), or none of these (X). ___ 1. Parking lots _ 2. Electricity used by a machine _ 3. Interest on building construction loan _ 4. Cost of trial runs for machinery _ 5. Drainage costs _ 6. Cost to install a machine _ 7. Fences _ 8. Unpaid (past) property taxes assumed ___ 9. Cost of tearing down a building when land and a building on it are purchased

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 11CDQ

See similar textbooks

Similar questions

Indicate whether each of the following expenditures should be classified as land, land improvements, buildings, equipment, or none of these. 1. 2. Parking lots Electricity used by a machine 3. Excavation costs 4. Interest on building construction loan 5. Cost of trial runs for machinery 6. Drainage costs 7. Cost to install a machine 8. Fences 9. Unpaid (past) property taxes assumed 10. Cost of tearing down a building when land and a building on it are purchased
Which of the following is considered capital expenditure Select one: a. Research expenses. b. Purchase of office consumables. c. Cost of material to construct new plant. d. Staff overtime.
Land improvements include: Oa. surveying fees. Ob. sales tax. Oc. freight. С. Od. outdoor lighting.
Which of the following items should be accounted for as a capital expenditure?a. The monthly rental cost of an office buildingb. Costs incurred to repair leaks in a building’s roofc. Maintenance fees paid with funds provided by the company’s capitald. Taxes paid in conjunction with the purchase of office equipment
Classify whether the following is capital expenditure or revenue expenditure:a. Purchase of dust cover for the computer printer.b. Payment made to get the building permit for the construction of storage shed.
Which of the following is an example of a capital expenditure? Select all that apply A- New equipment B- Employee salaries C- Computer software D- Repair and renovation costs
1. The cost of land typically includes the purchase price and all of the following costs except A) private driveways and parking lots. B) assumption of any liens or mortgages on the property. C) street lights, sewers, and drainage systems cost. D) grading, filling, draining, and clearing costs.
Required: Compute the cost of land, land improvements, building, and equipment.
How much is the new building? under the section of property, plant and equipment, how much should be reported as the total cost of land show solution
The funds allocated to products and services used to satisfy citizens' needs are classified as ___________________ expenditures. a. Capital expenditure b. Consumption c. Utilization d. Transfer payments
Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented here. New Office Equipment 1. List price: $42,600; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in: $880. 3. Installation: $400. 4. Cost to repair damage during unloading: $630. 5. Routine maintenance cost after eight months: $150. Basket Purchase of Copier, Computer, and Scanner for $52,500 with Fair Market Values 1. Copier, $23,421. 2. Computer, $12,027. 3. Scanner, $27,852. Land for New Warehouse with an Old Building Torn Down 1. Purchase price, $83,800. 2. Demolition of building, $4,760. 3. Lumber sold from old building, $1,780. 4. Grading in preparation for new building, $7,900. 5. Construction of new building, $279,000.
Which of the following is recorded as a cost when purchasing an existing building? A. cost to renovate the building before it is in use B. fencing O C. land where the building is located O D. parking lot around the building