Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $2,000 b. Cost of real estate acquired as a plant site: Land 280,000 Building (to be demolished) 55,000 c. Delinquent real estate taxes on property, assumed by purchaser 15,000 d. Cost of razing and removing building acquired in (b) 5,000 e. Proceeds from sale of salvage materials from old building 3,000 * f. Special assessment paid to city for extension of water main to the property 29,000 g. Architect’s and engineer’s fees for plans and supervision 60,000 h. Premium on one-year insurance policy during construction 7,000 i. Cost of filling and grading land 13,000 j. Money borrowed to pay building contractor 900,000 * k. Cost of repairing windstorm damage during construction 6,000 l. Cost of paving parking lot to be used by customers 33,000 m. Cost of trees and shrubbery planted 12,000 n. Cost of floodlights installed on parking lot 2,000 o. Cost of repairing vandalism damage during construction 2,000 p. Proceeds from insurance company for windstorm and vandalism damage 7,000 * q. Payment to building contractor for new building 700,000 r. Interest incurred on building loan during construction 34,000 s. Refund of premium on insurance policy (h) canceled after 11 months 400 * Required: 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign. Required: 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign. Item Account Amount a. Land $fill in the blank 2 b. Land $fill in the blank 4 c. Land $fill in the blank 6 d. Land $fill in the blank 8 e. Land $fill in the blank 10 f. Land $fill in the blank 12 g. Building $fill in the blank 14 h. Building $fill in the blank 16 i. Land $fill in the blank 18 j. Other Accounts $fill in the blank 20 k. Other Accounts $fill in the blank 22 l. Land Improvements $fill in the blank 24 m. Land Improvements $fill in the blank 26 n. Land Improvements $fill in the blank 28 o. Other Accounts $fill in the blank 30 p. Other Accounts $fill in the blank 32 q. Building $fill in the blank 34 r. Building $fill in the blank 36 s. Building $fill in the blank 38 2. Determine the amount debited to Land, Land Improvements, and Building. Land Land Improvements Building $fill in the blank 39 $fill in the blank 40 $fill in the blank 41 3. Land used as a plant site lose its ability to provide services; thus, it depreciated. However, land improvements lose their ability to provide services as time passes and are, therefore, . 4. What would be the effect on the income statement and balance sheet if the cost of filling and grading land of $13,000 [payment (i)] was incorrectly classified as Land Improvements rather than Land? Assume Land Improvements are depreciated over a 20-year life using the doubledeclining- balance method.

Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search $2,000 b. Cost of real estate acquired as a plant site: Land 280,000 Building (to be demolished) 55,000 c. Delinquent real estate taxes on property, assumed by purchaser 15,000 d. Cost of razing and removing building acquired in (b) 5,000 e. Proceeds from sale of salvage materials from old building 3,000 * f. Special assessment paid to city for extension of water main to the property 29,000 g. Architect’s and engineer’s fees for plans and supervision 60,000 h. Premium on one-year insurance policy during construction 7,000 i. Cost of filling and grading land 13,000 j. Money borrowed to pay building contractor 900,000 * k. Cost of repairing windstorm damage during construction 6,000 l. Cost of paving parking lot to be used by customers 33,000 m. Cost of trees and shrubbery planted 12,000 n. Cost of floodlights installed on parking lot 2,000 o. Cost of repairing vandalism damage during construction 2,000 p. Proceeds from insurance company for windstorm and vandalism damage 7,000 * q. Payment to building contractor for new building 700,000 r. Interest incurred on building loan during construction 34,000 s. Refund of premium on insurance policy (h) canceled after 11 months 400 * Required: 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign. Required: 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign. Item Account Amount a. Land $fill in the blank 2 b. Land $fill in the blank 4 c. Land $fill in the blank 6 d. Land $fill in the blank 8 e. Land $fill in the blank 10 f. Land $fill in the blank 12 g. Building $fill in the blank 14 h. Building $fill in the blank 16 i. Land $fill in the blank 18 j. Other Accounts $fill in the blank 20 k. Other Accounts $fill in the blank 22 l. Land Improvements $fill in the blank 24 m. Land Improvements $fill in the blank 26 n. Land Improvements $fill in the blank 28 o. Other Accounts $fill in the blank 30 p. Other Accounts $fill in the blank 32 q. Building $fill in the blank 34 r. Building $fill in the blank 36 s. Building $fill in the blank 38 2. Determine the amount debited to Land, Land Improvements, and Building. Land Land Improvements Building $fill in the blank 39 $fill in the blank 40 $fill in the blank 41 3. Land used as a plant site lose its ability to provide services; thus, it depreciated. However, land improvements lose their ability to provide services as time passes and are, therefore, . 4. What would be the effect on the income statement and balance sheet if the cost of filling and grading land of $13,000 [payment (i)] was incorrectly classified as Land Improvements rather than Land? Assume Land Improvements are depreciated over a 20-year life using the doubledeclining- balance method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Allocating payments and receipts to fixed asset accounts

The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk.

a.	Fee paid to attorney for title search	$2,000
b.	Cost of real estate acquired as a plant site: Land	280,000
	Building (to be demolished)	55,000
c.	Delinquent real estate taxes on property, assumed by purchaser	15,000
d.	Cost of razing and removing building acquired in (b)	5,000
e.	Proceeds from sale of salvage materials from old building	3,000	*
f.	Special assessment paid to city for extension of water main to the property	29,000
g.	Architect’s and engineer’s fees for plans and supervision	60,000
h.	Premium on one-year insurance policy during construction	7,000
i.	Cost of filling and grading land	13,000
j.	Money borrowed to pay building contractor	900,000	*
k.	Cost of repairing windstorm damage during construction	6,000
l.	Cost of paving parking lot to be used by customers	33,000
m.	Cost of trees and shrubbery planted	12,000
n.	Cost of floodlights installed on parking lot	2,000
o.	Cost of repairing vandalism damage during construction	2,000
p.	Proceeds from insurance company for windstorm and vandalism damage	7,000	*
q.	Payment to building contractor for new building	700,000
r.	Interest incurred on building loan during construction	34,000
s.	Refund of premium on insurance policy (h) canceled after 11 months	400	*

Required:

1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign.

Required:

Item	Account	Amount
a.	Land	$fill in the blank 2
b.	Land	$fill in the blank 4
c.	Land	$fill in the blank 6
d.	Land	$fill in the blank 8
e.	Land	$fill in the blank 10
f.	Land	$fill in the blank 12
g.	Building	$fill in the blank 14
h.	Building	$fill in the blank 16
i.	Land	$fill in the blank 18
j.	Other Accounts	$fill in the blank 20
k.	Other Accounts	$fill in the blank 22
l.	Land Improvements	$fill in the blank 24
m.	Land Improvements	$fill in the blank 26
n.	Land Improvements	$fill in the blank 28
o.	Other Accounts	$fill in the blank 30
p.	Other Accounts	$fill in the blank 32
q.	Building	$fill in the blank 34
r.	Building	$fill in the blank 36
s.	Building	$fill in the blank 38

2. Determine the amount debited to Land, Land Improvements, and Building.

Land	Land Improvements	Building
$fill in the blank 39	$fill in the blank 40	$fill in the blank 41

3. Land used as a plant site lose its ability to provide services; thus, it depreciated. However, land improvements lose their ability to provide services as time passes and are, therefore, .

4. What would be the effect on the income statement and balance sheet if the cost of filling and grading land of $13,000 [payment (i)] was incorrectly classified as Land Improvements rather than Land? Assume Land Improvements are depreciated over a 20-year life using the doubledeclining- balance method.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.