Determining Ending Balances in Land and Building Accounts Maldive Company completes the construction of a building. The following separate items are the costs relevant to the purchase of the lot and construction of the building. Cash payments to contractor Costs of constructing foundation Cost of land (building site) Gross cost to raze old building on land Proceeds from old building salvage Utility charges for electricity used in construction Capitalized interest on construction $80,000 2,400 Check 40,000 16,000 4,000 1,600 2,400 Determine the ending balance for (1) the Land account and for (2) the Building account. Ending balance in the Land account $ Ending balance in the Building account $ 40,000 x 102,800 x

Determining Ending Balances in Land and Building Accounts Maldive Company completes the construction of a building. The following separate items are the costs relevant to the purchase of the lot and construction of the building. Cash payments to contractor Costs of constructing foundation Cost of land (building site) Gross cost to raze old building on land Proceeds from old building salvage Utility charges for electricity used in construction Capitalized interest on construction $80,000 2,400 Check 40,000 16,000 4,000 1,600 2,400 Determine the ending balance for (1) the Land account and for (2) the Building account. Ending balance in the Land account $ Ending balance in the Building account $ 40,000 x 102,800 x

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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Determining cost of land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $36,000 in cash and giving a short-term note for $273,000. Legal fees paid were $1,850, delinquent taxes assumed were $11,300, and fees paid to remove an old building from the land were $22,300. Materials salvaged from the demolition of the building were sold for $4,600. A contractor was paid $939,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.
homework i Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $846,300 cash. The land was appraised at $194,649 and the building at $778,596. Required: a. What is the accounting term for this type of acquisition? b. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. c. Would the company recognize a gain on the purchase? d. Record the purchase in a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Check my work Record the purchase in a horizontal statements model. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. In the Statement of Cash Flows column, use the initials OA to designate operating IA for investing activity, FA for financing activity, NC for net change in cash and NA for not affected. Enter any decreases to account balances and…
Question 1
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,235,000. Harding paid $280,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $296,000; Building, $880,000 and Equipment, $584,000. What value will be reported for the building on the balance sheet? Multiple Choice O $355.000 $880,000 $617,500 $140,000
Cost of a Fixed Asset Borges Inc. recently purchased land to use for the construction of its new manufacturing facility and incurred the following costs: purchase price, $83,000; interest charges, $500; real estate commissions, $4,800; delinquent property taxes, $1,500; closing costs, $3,300; and clearing and grading of the land, $8,100. Required: Determine the cost of the land. X Feedback Check My Work The cost of a fixed asset is any expenditure necessary to acquire the asset and to prepare the asset for use. These expenditures are said to be capitalized. screen rec
intruction: C&M Securities made several expenditures during the current fiscal year, including the following: Amount Description of Expenditure 1. $150,000 Acquisition of a piece of land to be used as a building site 2. 3,000 Demolition of a small building on the land, to make way for the new building 3. 7,500 Levelling of the land to prepare it for construction of the new building 4. 290,000 Construction of the new building 5. 12,000 Paving of a parking lot beside the building 6. 6,000 Addition of decorative landscaping around the building (such as planting flowers and ornamental shrubs) 7. 80,000 Purchase of a new piece of equipment 8. 6,000 Sales taxes on the new equipment 9. 3,000 Installation of the new equipment 10. 1,500 Testing and adjustment of the new equipment prior to its use 11. 1,000 Minor repairs to some old equipment 12. 7,000 Major overhaul of an old piece of equipment, extending its useful life by three years 13. 1,200 Routine maintenance of equipment 14. 2,000…
O Determine Cost of Land Four Corners Delivery Company acquired an adjacent lot to construct a new warehouse, paying $29,000 and giving a short-term note for $325,000. Legal fees paid were $2,375, delinquent taxes assumed were $9,200, and fees paid to remove an old building from the land were $22,200. Materials salvaged from the demolition of the building were sold for $5,300. A contractor was paid $1,076,200 to construct a new warehouse. Determin he cost of the land to be reported on the balance sheet.
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Based on the following data, determine the cost of the land to be reported on the balance sheet. Land purchase price $177,668 Broker's commission 17,098 Payment for demolition and removal of existing building 5,376 Cash received from sale of materials salvaged from demolished building 1,031
The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. a. Money borrowed to pay building contractor (signed a note) $(275,000) b. Payment for construction from note proceeds 275,000 c. Cost of land fill and clearing 8,000 d. Delinquent real estate taxes on property assumed by purchaser 7,000 e. Premium on 6-month insurance policy during construction 6,000 f. Refund of 1-month insurance premium because construction completed early (1,000) g. Architect’s fee on building 22,000 h. Cost of real estate purchased as a plant site (land $200,000 and building $50,000) 250,000 i. Commission fee paid to real estate agency 9,000 j. Installation of fences around property 4,000 k. Cost of razing and removing building 11,000 l. Proceeds from salvage of demolished…