A company purchases a new building for $500,000. They pay $100,000 in cash and finance the remainder with amortgage. The land the building sits on is appraised at $150,000. Additionally, the company incurs closing costs of $10,000, which are paid in cash. Prepare the journal entries to record the acqusisition and allocate the cost between theland and the building. If you give Al or Chatgpt answers i will give 20 downvotes

The objective of this question is to understand how to record the acquisition of a building and land…

Answered: A company purchases a new building for…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 45P

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The president of ACCO 202 Corporation donated a building to Ana G. Méndez Corporation. The building had an original cost of $200,000, a book value of $75,000, and a fair market value of $180,000. To record this donation, Ana G. Méndez would a. Make a memorandum entry b. Debit Building for $75,000 and credit Gain for $75,000 c. Debit Building for $200,000 and credit Gain for $200,000 d. Debit Building for $180,000 and credit Gain for $180,000
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Some of the following items should be treated as capital and some as revenue. Carriage paid to bring the purchased machinery to the works. Complete redecoration of the premises at a cost of Kshs.150,000. A quarterly account for heating. The purchase of a soft drinks vending machine for the canteen with a stock of soft drinks. Wages paid by a building contractor to his own workmen for the erection of an office in the builder's stockyard. Required: For each item, give an appropriate classification. Give justification for each classification.
Cala Manufacturing purchases land for $327,000 as part of its plans to build a new plant. The company pays $35,100 to tear down an old building on the lot and $51,887 to fill and level the lot. It also pays construction costs of $1,278,200 for the new building and $80,684 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 1 Record entry Clear entry Debit Credit View genera
Cala Manufacturing purchases land for $451,000 as part of its plans to build a new plant. The company pays $26,600 to tear down an old building on the lot and $39,322 to fill and level the lot. It also pays construction costs $1,748,500 for the new building and $110,371 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.
Cala Manufacturing purchases land for $381,000 as part of its plans to build a new plant. The company pays $26,000 to tear down an old building on the lot and $38,435 to fill and level the lot. It also pays construction costs $1,264,800 for the new building and $79,838 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 Record entry Clear entry Vlew general journal Prev 1 of 7 Next > MacBook Air
Cala Manufacturing purchases land for $337,000 as part of its plans to build a new plant. The company pays $33,200 to tear down an old building on the lot and $49,078 to fill and level the lot. It also pays construction costs of $1,441,700 for the new building and $91,004 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. Please don't give image based answer..thanku
Cala Manufacturing purchases land for $459,000 as part of its plans to build a new plant. The company pays $39,800 to tear down an old building on the lot and $58,835 to fill and level the lot. It also pays construction costs of $1,498,000 for the new building and $94,558 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 1 Record entry Clear entry View genera

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