Eagle Country Club has acquired a lot to construct a clubhouse. Eagle had the following costs related to the construction: Architects' fees $45,000 Construction labor 80,000 Engineers' fees 15,000 Fences around building 9,000 Grading and leveling 10,000 Insurance costs incurred during construction 7,000 Interest on money borrowed for construction 5,000 Land 73,000 Building Materials 237,000 Sales taxes 6,000 Trees and shrubs 6,000 Determine the cost of the Club House to be reported on the balance sheet.

Eagle Country Club has acquired a lot to construct a clubhouse. Eagle had the following costs related to the construction: Architects' fees $45,000 Construction labor 80,000 Engineers' fees 15,000 Fences around building 9,000 Grading and leveling 10,000 Insurance costs incurred during construction 7,000 Interest on money borrowed for construction 5,000 Land 73,000 Building Materials 237,000 Sales taxes 6,000 Trees and shrubs 6,000 Determine the cost of the Club House to be reported on the balance sheet.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 000, accumulated depreciation to the contribution date of $37,000, and a fair value of $24,000.

A: Equipment Truck Total Fair Value-A 46,000 24,000 70,000 Historical…

Q: I want to answer this question

A: Approach to solving the question: Hi student! I hope the step help you to understand. If you have…

Q: American Golf Corporation operates golf courses throughout the country. For each of thefollowing…

A: Definition: Capital expenditure: It refers to the amount spent on acquiring, maintaining, and…

Q: (a) What is the cost per square foot of the 2500-ft² lodge? (b) If you are also considering a…

A: In construction costing, the expenditures from construction are reported on project basis. The costs…

Q: WANT ANSWER WITH EXPLANATION

A: Step 1: Introduction to Joint Costs:Allocation of joint costs refers to the process of dividing and…

Q: Cala Manufacturing purchases land for $317,000 as part of its plans to build a new plant. The…

A: Here in this question we are required to prepare single entry for purchasing land its improvement…

Q: Elsworthy Company operates a number of public golf courses in Florida. This year, Elsworthy…

A: Capitalized: An expense is recorded as an asset in the Balance Sheet rather than an expense in the…

Q: The Square Market has decided to expand its retail store by building on a vacant lot it currently…

A: Net present value method: Net present value method id the method which is used to compare the…

Q: A single-family home was developed five years ago in Neighborhood X and the owner would like to…

A: The cost approach is one of the methods used to estimate the value of real estate. It is based on…

Q: A company needed a new building. It found a suitable location with an existing old building on the…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: Larkspur Corporation donates equipment and a truck to the community Home Assistance Centre. The…

A: Cost of the equipment Less it's Accumulated depreciation is the book value And the book value minus…

Q: Need help with this Question

A: Computation of the total acquisition cost of the new building is as follows:Acquisition Cost of…

Q: Desert State University installed a HD video board with an invoice price of $5,000,000 in its…

A: Cost refers to the amount incurred for acquisition of a good or service having value.

Q: Sharkey's Fun Centre contains a number of electronic games, as well as a miniature golf course and…

A: Income statement :— It is one of the financial statement that shows profitability, total revenue and…

Q: The Venus Company hired an architect to design plans and a construction firm to build a new office…

A: Step 1: List the relevant costsPrice paid to the construction firm: This is the main cost for…

Q: Tamarisk Corporation donates equipment and a truck to the community Home Assistance Centre. The…

A: A journal entry is a method used in accounting to record financial transactions. It is the first…

Q: Need answer the question

A: Step 1: Definition of Acquisition Cost of AssetAcquisition Cost of Asset is the purchase price of…

Q: Larkspur Corporation donates equipment and a truck to the community Home Assistance Centre. The…

A: Cost of the equipment Less it's total Accumulated depreciation will results in book value And the…

Q: Farley Corporation purchased land adjacent to its plant to improve access for trucks making…

A: Purchase price$70,000Brokers fee$6,000Titles search and other fees$5,000Demolition of old…

Q: a. Water slide equipment could be purchased and installed at a cost of $345,000. Ac usable for 12…

A: Simple Rate Return = Net operating income / Initial investment net of salvage value of old equipment…

Q: Wonder Mountain Company operates a snow sports resort for skiers and snowboarders. The company has…

A: Cost of an asset is the amount paid for an asset and for expenses incurred in putting the asset in…

Question

100%

3. EX.09.198
Eagle Country Club has acquired a lot to construct a clubhouse. Eagle had the following costs related to the construction:
Architects' fees
$45,000
Construction labor
80,000
Engineers' fees
15,000
Fences around building
9,000
Grading and leveling
10,000
Insurance costs incurred during construction
7,000
Interest on money borrowed for construction
5,000
Land
73,000
Building Materials
237,000
Sales taxes
6,000
Trees and shrubs
6,000
Determine the cost of the Club House to be reported on the balance sheet.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Home Properties is developing a subdivision that includes 320 home lots. The 150 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 170 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $42,000 and for each Hilltop lot is $105,000. The developer acquired the land for $2,100,000 and spent another $3,000,000 on street and utilities improvements. Assign the joint land and improvement costs of $5,100,000 to the Canyon section and the Hilltop section using the value basis of allocation. (Do not round your intermediate calculations.) Canyon section Hilltop section Totals Sales Value Numerator Percent of Sales Value Denominator % of Sales Value 0 0 0 Cost to Allocate Allocated Cost Quantity of Lots
1. The Luna Corporation is trying to decide if they should purchase a Truck for hauling material which costs $625,400. The Truck will require $30,600 of working capital and major maintenance in years 3, year 5, and year 7. The major maintenance will cost $50,000 in years 3 and 5 and $65,000 in years 7. The truck will increase the net income by $185,750 in years 1 through 4, and $91,250 in years 5 through 7. At the end of year 7, the company expects to sell the truck for 5% of the cost that they paid for it. Calculate the net present value of the Truck using a 10% rate of return. Show your work and indicate if the Luna Corporation should purchase the Truck. PLEASE PUT IN SIMPLEST FORM
The Blowing Rock Partnership purchased land for $1,200,000 with plans to build a spa on the site. The partnership tore down several buildings on the property for $20,000. Salvaged materials with a cost of $6,000 will be repurposed in the spa. Trees were removed for $5,000 and drainage was added for $30,000. The area was fenced for $41,000. A preliminary consultation with an architect cost $2,500 and legal fees of $3,200 were paid in connection with changing the zoning of the property. What accounts will be debited for these costs? O Land, $1,249,000; Land Improvements, $41,000; Building, $5,700 O Land, $1,235,000; Land Improvements, $55,000; Architect Expense, $2,500,000; Legal Expense, $3,200 Land, $1,255,000; Land Improvements, $41,000; Building, $11,700 O Land, $1,249,000; Land Improvements, $41,000; Building, $2,500; Legal Expense, $3,200
Kate Company submitted an offer to purchase a plot of land that was listed at $120,000. Kate's offer was 10% below the list price and was accepted. Kate paid $10,000 to remove an old structure in order to make the land ready for use as a building site. Title and attorney fees amounted to $3,000. Annual property taxes amounted to $5,000 per year. Based on this information, the cost of the land as shown on the balance sheet equals answer must be correct
Kmu
The City of Waltham wants to obtain the value of its 99 year old City Hall property. Your firm has been engaged to provide an estimate of value. You will use the Cost Approach to determine value. You will be required to estimate reproduction or replacement cost new (specify which is appropriate and why) and proceed through the steps of the Cost Approach to complete the task. Cost Estimates (000 omitted): Cost of new construction: $153,000; Since the last renovation 30 years ago, physical deterioration: $22,000; functional obsolescence: $6,000; external obsolescence: $2,000; four (4) comparable land values have been identified for the valuation estimate: $49,000; $35,000; $40,000; $52,000. Show your answer and the steps of your analysis below:
Sharkey’s Fun Center contains a number of electronic games as well as a miniature golf course and various rides located outside the building. Paul Sharkey, the owner, would like to construct a water slide on one portion of his property. Mr. Sharkey gathered the following information about the slide: Water slide equipment could be purchased and installed at a cost of $345,000. According to the manufacturer, the slide would be usable for 12 years after which it would have no salvage value. Mr. Sharkey would use straight-line depreciation on the slide equipment. To make room for the water slide, several rides would be dismantled and sold. These rides are fully depreciated, but they could be sold for $117,500 to an amusement park in a nearby city. Mr. Sharkey concluded that about 50,000 more people would use the water slide each year than have been using the rides. The admission price would be $3.80 per person (the same price the Fun Center has been charging for the old rides). Based on…
Please help! Thank you