Brigadoon Consulting bought a building and the land on which it is located for $191,000 cash. The land is estimated to represent 70percent of the purchase price. The company paid $31,000 for building renovations before it was ready for use.Required:1. The renovation costs should be capitalized.O FalseO True2. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of theyear. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheetARecord the expenditures at the start of the year.Note: Enter debits before credits3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated twelve-year useful life and a$5,500 estimated residual value.Depreciation4. What should be the book value of the land and building at the end of year 2?Book value Assume the following data were included in a recent Apple Inc. annual report (in millions):2017201820192020Net salesNet property, plant, and equipment$15,531$20,9151,121$25,6061,672$34,0792,295657Required:1. Compute Apple's fixed asset turnover ratio for 2018, 2019, and 2020. (Round your answers to 1 decimal place.)Fixed AssetTurnover RatioYear201820192020

As per IAS 16 Property, plant and equipment, The renovation costs are to be capitalized in…

Brigadoon Consulting bought a building and the land on which it is located for $191.000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $31.000 for building renovations before it was ready for use. Required: 1. The renovation costs should be capitalized. O False O True 2. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year. (If no entry is required for a transection/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A Record the expenditures at the start of the year.

Brigadoon Consulting bought a building and the land on which it is located for $191.000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $31.000 for building renovations before it was ready for use. Required: 1. The renovation costs should be capitalized. O False O True 2. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year. (If no entry is required for a transection/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A Record the expenditures at the start of the year.

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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