Denver Co. acquired real estate for the construction of a building and other facilities. Operating equipment was also purchased and installed. P170,000 Cost of land purchased as a building site Architect's fee for design of new building 23,000 28,000 Paid for the demolition of an old building on the building site purchased above Paid land tax on the real estate purchased as a building site 1,700 Paid Geodetic engineer 10,000 Paid excavation costs for the new building 15,000 Made the first payment to the building Contractor 250,000 Paid for equipment to be installed in the new building 148,000 (6,800) Received from sale of salvaged materials from demolishing the old building Paid Civil engineer 20,000 Made final payment to the building Contractor 350,000 Paid interest on building loan during Construction 22,000 Paid freight on equipment purchased 1,900 Paid installation costs of equipment 4,200 Paid for repair of equipment damaged during installation 2,700 Property ledger account balance P1,039,700 As the company's accountant, you are required to compute the correct balance of the following: 1.) Land 2.) Building

Denver Co. acquired real estate for the construction of a building and other facilities. Operating equipment was also purchased and installed. P170,000 Cost of land purchased as a building site Architect's fee for design of new building 23,000 28,000 Paid for the demolition of an old building on the building site purchased above Paid land tax on the real estate purchased as a building site 1,700 Paid Geodetic engineer 10,000 Paid excavation costs for the new building 15,000 Made the first payment to the building Contractor 250,000 Paid for equipment to be installed in the new building 148,000 (6,800) Received from sale of salvaged materials from demolishing the old building Paid Civil engineer 20,000 Made final payment to the building Contractor 350,000 Paid interest on building loan during Construction 22,000 Paid freight on equipment purchased 1,900 Paid installation costs of equipment 4,200 Paid for repair of equipment damaged during installation 2,700 Property ledger account balance P1,039,700 As the company's accountant, you are required to compute the correct balance of the following: 1.) Land 2.) Building

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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