9. On March 1, 2007, Mourinho Company purchased land for an office site bypaying $540,000 cash. Mourinho began construction on the office building onMarch 1. The following expenditures were incurred for construction:1,360,000March2007April 1, 2007May 1, 2007June 1, 20071,440,000504,000900,000The office was completed and ready for occupancy on July 1. To help pay forconstruction, $720,000 was borrowed on March 1, 2007 on a 9%, 3-year notepayable. Other than the construction note, the only debt outstanding during 2007was $300,000, 12%, 6-year note payable dated January 1, 2007. The weighted-average accumulated expenditures on the construction project during 2007 werea. $384,000b. $2,934,000c. $312,000d. $696,000

Date ExpendituresMarch 1, 2007…

Answered: 9. On March 1, 2007, Mourinho Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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7. Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $322,000 cash plus $12,880 in sales tax and $1,800 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $32,200 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,500. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,200 to overhaul the loader’s engine, which increased the loader’s estimated useful life by two years. February 17 Paid $1,050 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required:Prepare journal entries to record these transactions and events.
Please refer to the picture below for information. Kindly show the complete solution. Thank you so much. Question 1: What is the total cost of the Building on June 30, 2016?
Synder corp present the following information for the year ended December 2008. Inventories Beginning Ending Materials $50,000 $25,000 Work in progress $100,000 $65,000 Finished Goods $40,000 $43,000 Other Information: Depreciation of plant, building and equipment $15,000 Material purchases $155,000 Insurance on plant $20,000 Sales Salaries Expense $48,000 Repairs and maintenance-plant $5,000 Indirect Labour $30,000 Direct Labour $120,000 Admnistrative expenses $52,000 Sales Revenue $550,700 1. Prepare a schedule of cost of goods manufactured FOR THE YEAR ended December 31,2008
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