Novak Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment.Abstract company’s fee for title search $1,066Architect’s fees 6,499Cash paid for land and dilapidated building thereon 178,350Removal of old building $41,000 Less: Salvage 11,275 29,725Interest on short-term loans during construction 15,170Excavation before construction for basement 38,950Machinery purchased (subject to 2% cash discount, which was not taken) 112,750Freight on machinery purchased 2,747Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 4,469New building constructed (building construction took 6 months from date of purchase of land and old building) 994,250Assessment by city for drainage project 3,280Hauling charges for delivery of machinery from storage to new building 1,271Installation of machinery 4,100Trees, shrubs, and other landscaping after completion of building (permanent in nature) 11,070 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. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.) Land Buildings Machinery and Equipment OtherAbstract fees $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount Architect’s fees enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountCash paid for land and old building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountRemoval of old building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountInterest on loans during construction enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountExcavation before construction enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountMachinery purchased enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountFreight on machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountStorage charges caused by noncompletion of building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountNew building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountAssessment by city enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountHauling charges - machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountInstallation - machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amountLandscaping enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount $enter a total amount $enter a total amount $enter a total amount $enter a total amount

Land Buildings Machinery and Equipment Other Abstract company’s fee for title search 1,066 Architect’s fees 6,499 Cash paid for land and old building 178,350 Removal of old building 29,725 Interest on short-term loans during construction 15,170 Excavation before construction for basement 38,950 Machinery purchased 110,495 2,255 Freight on machinery purchased 2,747 Storage charges on machinery 4,469 New building constructed 994,250 Assessment by city for drainage project 3,280 Hauling charges 1,271 Installation of machinery 4,100 Trees, shrubs, and other landscaping 11,070 Total 223,491 1,054,869 117,342 7,995Machinery Purchased = 112,750*98% =110,490 Discount (Others) = 112,750*2% =2,255

Answered: Determine the amounts that should be…

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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Novak Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment.

Abstract company’s fee for title search		$1,066
Architect’s fees		6,499
Cash paid for land and dilapidated building thereon		178,350
Removal of old building	$41,000
Less: Salvage	11,275	29,725
Interest on short-term loans during construction		15,170
Excavation before construction for basement		38,950
Machinery purchased (subject to 2% cash discount, which was not taken)		112,750
Freight on machinery purchased		2,747
Storage charges on machinery, necessitated by noncompletion of
building when machinery was delivered		4,469
New building constructed (building construction took 6 months from
date of purchase of land and old building)		994,250
Assessment by city for drainage project		3,280
Hauling charges for delivery of machinery from storage to new building		1,271
Installation of machinery		4,100
Trees, shrubs, and other landscaping after completion of building
(permanent in nature)		11,070

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. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)

	Land	Buildings	Machinery and Equipment	Other
Abstract fees	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount
Architect’s fees	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Cash paid for land and old building	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Removal of old building	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Interest on loans during construction	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Excavation before construction	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Machinery purchased	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Freight on machinery	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Storage charges caused by noncompletion of building	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
New building	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Assessment by city	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Hauling charges - machinery	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Installation - machinery	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Landscaping	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
	$enter a total amount	$enter a total amount	$enter a total amount	$enter a total amount

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