Splish Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and toMachinery and Equipment.Abstract company's fee for title search$1,144Architect's fees6,974Cash paid for land and dilapidated building thereon191,400Removal of old building$44,000Less: Salvage12,10031,900Interest on short-term loans during construction16,280Excavation before construction for basement41,800Machinery purchased (subject to 2% cash discount, which was not taken)121,000Freight on machinery purchased2,948Storage charges on machinery, necessitated by noncompletion ofbuilding when machinery was delivered4,796New building constructed (building construction took 6 months fromdate of purchase of land and old building)1,067,000Assessment by city for drainage project3,520Hauling charges for delivery of machinery from storage to new building1,364Installation of machinery4,400Trees, shrubs, and other landscaping after completion of building(permanent in nature)11,880Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits ofcapitalizing interest during construction exceed the cost of implementation. Indicate how any costs not debited to these accountsshould be recorded. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)$Abstract feesArchitect'sfeesCash paid forland and oldbuildingRemoval of oldbuildingInterest onJoona duringLand$Buildings$Machinery and Equipment$ Removal of oldbuildingInterest onloans duringconstructionExcavationbeforeconstructionMachinerypurchasedFreight onmachineryStoragechargescaused bynoncompletionof buildingNew buildingAssessment bycityHaulingcharges -machineryInstallation-machineryLandscaping$$$$eTextbook and Media

Cost of Asset (Capitalised to Asset):A capitalized cost is an expense added to the cost basis of a…

Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Indicate how any costs not debited to these accounts should be recorded. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)

Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Indicate how any costs not debited to these accounts should be recorded. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)

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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