ACCOUNTS: Land, Building and Other Accounts Date Year 2022 Item 8-Jun Organization fees paid to the state 16-Jun Land site and old building 30-Jun Corporate Organization costs 2-Jul Title clearance fees 28-Aug Cost of razing old building 1-Sep Salaries of Crawford Corporation executives 1-Sep Cost of acquire patent for special equipment 12-Dec Stock bonus to corporate promoters, 2000 shares of common stock, $50 per share market value 15-Dec County real estate tax 15-Dec Cost of new building completed and occupied on this date Debit Credit Debit Balance Credit 20,000 20,000 315,000 335,000 30,000 365,000 18,400 383,400 20,000 403,400 60,000 463,400 60,000 523,400 100,000 623,400 14,400 637,800 1,750,000 2,387,800 An analysis of this accounts and of others disclosed the following additional information: a. The land site and old building was acquired on June 16, 2022, was valued at $35,000. b. The corporation paid $20,000 for the demolition of the old building, then sold the scrap for $12,000 and credited the proceeds to Miscellaneous Revenue. c. The corporation executives did not participate in the construction fo the new building. d. The county real estate tax was for the six-month period ended December 31, 2022, and was accessed by the county on the land. Required: Prepare a schedule showing each amount and the account to be accounted for. Prepare all neccesary journal entries to account for the above transactions.
ACCOUNTS: Land, Building and Other Accounts Date Year 2022 Item 8-Jun Organization fees paid to the state 16-Jun Land site and old building 30-Jun Corporate Organization costs 2-Jul Title clearance fees 28-Aug Cost of razing old building 1-Sep Salaries of Crawford Corporation executives 1-Sep Cost of acquire patent for special equipment 12-Dec Stock bonus to corporate promoters, 2000 shares of common stock, $50 per share market value 15-Dec County real estate tax 15-Dec Cost of new building completed and occupied on this date Debit Credit Debit Balance Credit 20,000 20,000 315,000 335,000 30,000 365,000 18,400 383,400 20,000 403,400 60,000 463,400 60,000 523,400 100,000 623,400 14,400 637,800 1,750,000 2,387,800 An analysis of this accounts and of others disclosed the following additional information: a. The land site and old building was acquired on June 16, 2022, was valued at $35,000. b. The corporation paid $20,000 for the demolition of the old building, then sold the scrap for $12,000 and credited the proceeds to Miscellaneous Revenue. c. The corporation executives did not participate in the construction fo the new building. d. The county real estate tax was for the six-month period ended December 31, 2022, and was accessed by the county on the land. Required: Prepare a schedule showing each amount and the account to be accounted for. Prepare all neccesary journal entries to account for the above transactions.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 11PC: Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger...
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Transcribed Image Text:ACCOUNTS: Land, Building and Other Accounts
Date
Year 2022
Item
8-Jun Organization fees paid to the state
16-Jun Land site and old building
30-Jun Corporate Organization costs
2-Jul Title clearance fees
28-Aug Cost of razing old building
1-Sep Salaries of Crawford Corporation executives
1-Sep Cost of acquire patent for special equipment
12-Dec Stock bonus to corporate promoters, 2000 shares
of common stock, $50 per share market value
15-Dec County real estate tax
15-Dec Cost of new building completed and occupied on this date
Debit
Credit
Debit
Balance
Credit
20,000
20,000
315,000
335,000
30,000
365,000
18,400
383,400
20,000
403,400
60,000
463,400
60,000
523,400
100,000
623,400
14,400
637,800
1,750,000
2,387,800
An analysis of this accounts and of others disclosed the following additional information:
a. The land site and old building was acquired on June 16, 2022, was valued at $35,000.
b. The corporation paid $20,000 for the demolition of the old building, then sold the scrap for
$12,000 and credited the proceeds to Miscellaneous Revenue.
c. The corporation executives did not participate in the construction fo the new building.
d. The county real estate tax was for the six-month period ended December 31, 2022, and
was accessed by the county on the land.
Required:
Prepare a schedule showing each amount and the account to be accounted for.
Prepare all neccesary journal entries to account for the above transactions.
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