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Based on the above and the result of your audit, determine the following: 1. Cost of Land 2. Cost of Building 3. Cost of Land Improvements 4. Amount that should be expensed when incurred 5. Total depreciable property and equipment

Based on the above and the result of your audit, determine the following: 1. Cost of Land 2. Cost of Building 3. Cost of Land Improvements 4. Amount that should be expensed when incurred 5. Total depreciable property and equipment

FINANCIAL ACCOUNTING
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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QUESTIONS: Based on the above and the result of your audit, determine the following: 1. Cost of Land 2. Cost of Building 3. Cost of Land Improvements 4. Amount that should be expensed when incurred 5. Total depreciable property and equipment
Transcribed Image Text:QUESTIONS: Based on the above and the result of your audit, determine the following: 1. Cost of Land 2. Cost of Building 3. Cost of Land Improvements 4. Amount that should be expensed when incurred 5. Total depreciable property and equipment
AUDIT OF PROPERTY PLANT EQUIPMENT PROBLEM NO. 1 Aliaga Corporation was incorporated on January 2, 2020. The following items relate to the Aliaga's property and equipment transactions: Cost of land, which included an old apartment building appraised at P300,000 Apartment building mortgage assumed, including related interest due at the time of purchase Deliquent property taxes assumed by the Aliaga Payments to tenants to vacate the apartment building Cost of razing the apartment building Proceeds from sale of salvaged materials Architects fee for new building Building permit for new construction Fee for title search P3,000,000 80,000 30,000 20,000 40,000 10,000 60,000 40,000 25,000 20,000 100,000 10,000,000 15,000 50,000 80,000 50,000 Survey before construction of new building Excavation before construction of new building Payment to building contractor Assessment by city for drainage project Cost of grading and leveling Temporary quarters for construction crew Temporary building to house tools and materials Cost of changes during construction to make new building more energy efficient Interest cost on specific borrowing incurred during 90,000 construction 360,000 Payment of medical bills of employees accidentally injured while inspecting building construction Cost of paving driveway and parking lot Cost of installing lights in parking lot Premium for insurance on building during construction Cost of open house party to celebrate opening of new building Cost of windows broken by vandals distracted by the celebration 18,000 60,000 12,000 30,000 50,000 12,000
Transcribed Image Text:AUDIT OF PROPERTY PLANT EQUIPMENT PROBLEM NO. 1 Aliaga Corporation was incorporated on January 2, 2020. The following items relate to the Aliaga's property and equipment transactions: Cost of land, which included an old apartment building appraised at P300,000 Apartment building mortgage assumed, including related interest due at the time of purchase Deliquent property taxes assumed by the Aliaga Payments to tenants to vacate the apartment building Cost of razing the apartment building Proceeds from sale of salvaged materials Architects fee for new building Building permit for new construction Fee for title search P3,000,000 80,000 30,000 20,000 40,000 10,000 60,000 40,000 25,000 20,000 100,000 10,000,000 15,000 50,000 80,000 50,000 Survey before construction of new building Excavation before construction of new building Payment to building contractor Assessment by city for drainage project Cost of grading and leveling Temporary quarters for construction crew Temporary building to house tools and materials Cost of changes during construction to make new building more energy efficient Interest cost on specific borrowing incurred during 90,000 construction 360,000 Payment of medical bills of employees accidentally injured while inspecting building construction Cost of paving driveway and parking lot Cost of installing lights in parking lot Premium for insurance on building during construction Cost of open house party to celebrate opening of new building Cost of windows broken by vandals distracted by the celebration 18,000 60,000 12,000 30,000 50,000 12,000
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