ecessary journa
Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 in…
A: Solution: Cost of land to be reported = $377,305 Cost of land = cash paid to acquire land +…
Q: Mohr Company purchases a machine at the beginning of the year at a cost of $34,000. The machine is…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Cala Manufacturing purchases land for $337,000 as part of its plans to build a new plant. The…
A: Journal entry is the primary reporting of transactions in the books of accounts. These are further…
Q: On February 1, 2010, Morgan Company purchased a parcel of land as a factory site for $200,000. An…
A: The costs associated with the land include the purchase price of the land, the cost of demolishing…
Q: Allocation of variable plant overhead based on labour hours worked on the building, $34,000…
A: An alternate approach to estimating asset worth is to calculate the "cost to generate," which…
Q: Karl bought a building and the land on which it is located for $186,100 cash. The land is estimated…
A: Journal means the book of prime entry where all entries are recorded in different pages. Ledger…
Q: Prepare the December 31 entry for Pronghorn Corporation to record amortization of intangibles. The…
A: Amortization is the expense which is written in the imcome statement as the decrease in the value of…
Q: Coronado Co. purchased land as a factory site for $496,000. The process of tearing down two old…
A: Cost of land: The financial accounting term cost of the land refers to the asset valuation method…
Q: Vaughn Co. purchased land as a factory site for $520,000. The process of tearing down two old…
A: Cost of the asset or the book value of the asset is the amount at which an asset is recorded in the…
Q: Blossom Corp purchased land as a factory site for $250000. They paid $11000 to tear down two…
A: The cost of acquisition is the total expense incurred in acquiring or purchasing an asset. Cost of…
Q: ala Manufacturing purchases land for 1,000 as part of its plans to build a new plant. The company…
A: The journal entries are prepared to keep the record of transactions on regular basis. The cost…
Q: Hardev
A: Cullumber's decision to replace a portion of its factory floor prompts several accounting…
Q: Cala Manufacturing purchases land for $301,000 as part of its plans to build a new plant. The…
A: The cost of assets should include the additional costs incurred to bring the asset to the usage.…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: On January 1, 2018, Absolutely Bar & Grill purchased a building, paying $57,000 cash and signing…
A:
Q: Waterway Co. purchased land as a factory site for $536,000. The process of tearing down two old…
A: The land is recorded at its original cost which also includes expenditures related to its…
Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $42,000 in…
A: The cost of a capital asset includes the purchase cost of the asset and any other costs incurred to…
Q: Moby Co. purchased land costing $2,550,000 as a future factory site. Moby paid $240,000 to tear down…
A: Cost of land includes the purchase price of the land, costs to remove any old structures, legal…
Q: Peace Co. purchased land as a factory site for P300,000. Peace paid P30,000 to tear down two…
A: Cost of Land generally includes the purchase price of land, legal fees, title fees, survey fees and…
Q: Bluestone Company had three intangible assets at the end of the current year: A patent purchased…
A: Intangible Assets According to IAS 38 which specifies the standards for identifying and valuing…
Q: Crane Corp. purchased land as a factory site for $280000. They paid $12200 to tear down two…
A: Cost of land includes all the direct related cost for acquisition and preparation for the intended…
Q: Carla Vista Corp. purchased land as a factory site for $330000. They paid $10400 to tear down two…
A: Cost of land includes all the direct related cost for acquisition and preparation for the intended…
Q: New energy-efficient windows were installed for a total cost of $375,000. The company received a…
A: The net method involves recognizing the grant as a reduction in the cost of the asset.The deferral…
Q: Cala Manufacturing purchases land for $297,000 as part of its plans to build a new plant. The…
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: Midnight, Inc. incurred the following costs related to equipment purchased on January 1, 2022: •…
A: It is the amount of reduction in the value of a tangible fixed asset due to tear and wear,…
Q: Cala Manufacturing purchases land for $390,000 as part of its plans to build a new plant. The…
A: The costs incurred up to filling the level are capitalized in "land.".While costs incurred in…
Q: 1) Rocky Mountain Water Corporation paid $270,000 to purchase equipment for use in its manufacturing…
A: Equipment is the non-current asset that is used by the entities for the purpose of running the…
Q: Peace Co. purchased land as a factory site for P300,000. Peace paid P30,000 to tear down two…
A: Cost of Building include Architect's Fees, Liability Insurance Cost, Excavation Cost, Contractor's…
Q: Northwest Delivery Company acquired an adjacent lot to construct a new warehouse, paying $75,000 and…
A: Amount paid for the construction of new warehouse will not be part of the cost of the land.
Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $32,000 in…
A: The objective of the question is to determine the cost of the land to be reported on the balance…
Q: On March 1, 2021, Sage Hill Company acquired real estate on which it planned to construct a small…
A: Architects and driveways and a parking lot are not part of cost of land.
Q: Jacobson Company purchased a parcel of land for a new office building. The cost of the land was…
A: Fixed assets are the resources of a company that have been used in the business for more than one…
- During 2001, Daisy Co. incurred P 1,500,000 in direct materials, P 1,200,000 in direct labor, and P 1,000,000 in
overhead in the self-constructed building to be held as an investment property. The building was completed on December 31, 2001. The fair value of the building on December 31, 2001, is P 4,000,000. Prepare all the necessaryjournal entries in 2001.
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- Double Island Ltd constructed a Whizbang Machine and incurred the following costs in doing so: Amounts paid to employees to build the machine $120 000 Raw materials consumed in building the machine $45 000 Depreciation of manufacturing equipment attributed to the construction of the Whizbang Machine $25 000 REQUIRED Provide the journal entries that Double Island Ltd would use to account for the construction of the asset. Assume that immediately after the journal entries in part (a) have been made, new information becomes available that indicates that the recoverable amount of the Whizbang Machine is only $160 000. Provide the adjusting journal entriesA company purchased a 10-ton draw press at a cost of $181,000 with terms of 215/,n45./215,n45. Payment was made within the discount period. Shipping costs were $4,200, which included $230 for insurance in transit. Installation costs totaled $11,300, which included $4,800 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10-ton draw press is:Concord Landscaping began construction of a new plant on December 1, 2025. On this date, the company purchased a parcel of land for $125,100 in cash. In addition, it paid $1.800 in surveying costs and $3,600 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $2,700, with $900 being received from the sale of materials. Architectural plans were also formalized on December 1, 2025, when the architect was paid $30,000. The necessary building permits costing $2,700 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2026 as follows. Date of Payment Amount of Payment March 1 May 1 July 1 $216.000 297,000 54,000 The building was completed on July 1, 2026. To finance construction of this plant, Concord borrowed $540,000 from the bank on December 1, 2025. Concord had no other borrowings. The $540,000 was a 10-year loan bearing interest at 8%.…
- Apple Co. purchased land as a factory site for $1,350,000. Apple paid $120,000 to tear down two buildings on the land. Salvage was sold for $8,100. Legal fees of $5,220 were paid for title investigation and making the purchase. Architect's fees were $46,800. Title insurance cost $3,600, and liability insurance during construction cost $3,900. Excavation cost $15,660. The contractor was paid $4,200,000. An assessment made by the city for pavement was $11,600. Interest costs during construction were $255,000. The cost of the land that should be recorded by Apple Co. isTexas Co. purchased land as a factory site for $1,500,000. Texas paid $200,000 to tear down two buildings on the land. Legal fees of $10,000 were paid for title investigation and making the purchase. Architect's fees were $40,000. Title insurance cost $5,000, and liability insurance during construction cost $4,000. Excavation cost $20,000. The contractor was paid $4,000,000. An assessment made by the city for pavement was $20,000. Interest costs during construction were $200,000. The cost of the land that should be recorded by Texas Co. is?Corazon Company purchased an asset with a list price of $17,600. Corazon paid $1,400 of transportation-in cost, $1,700 to train an employee to operate the equipment, and $1,100 to insure the asset against theft after it has been set up in the factory. The asset was purchased under terms 1/20, n/30 and Corazon paid for the asset within the discount period. Based on this information, Corazon would capitalize the asset on its books at: Multiple Choice O O O $19,124. $17,600. $19,300. $20,524.
- On May 4, Year 1, Steger Company purchased a tract of land as a factory site for $1,630,000. An existing building on the property was demolished, and construction was begun on a new factory building in July Year 1 and completed December 15, Year 1. Cost data are shown below. Construction cost of new building Cost of demolishing old building Proceeds from sale of lumber from old building Architect's fees relating to construction of new building Title insurance and attorney's fee for purchase of land Required: Compute the capitalized cost of (1) the land and (2) the new factory building. Land 2. New factory building $7,590,000 139,000 22,900 229,000 83,300Cala Manufacturing purchases land for $459,000 as part of its plans to build a new plant. The company pays $39,800 to tear down an old building on the lot and $58,835 to fill and level the lot. It also pays construction costs of $1,498,000 for the new building and $94,558 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View generaMurphy Self Storage purchased land, paying $160,000 cash as a down payment and signing a $185,000 note payable for the balance. Murphy also had to pay delinquent property tax of $2,000, title insurance costing $6,000, and $11,000 to level the land and remove an unwanted building. The company paid $58,000 to add soil for the foundation and then constructed an office building at a cost of $700,000. It also paid $52,000 for a fence around the property, $11,000 for the company sign near the property entrance, and $3,000 for lighting of the grounds. Read the requirement. The cost of the land is The cost of the land improvements is The cost of the building is Requirement 1. What is the capitalized cost of each of Murphy's land, land improvements, and building? Print Done - X
- Cullumber paid $48,000 to replace part of the factory floor. The floor had been capitalized as part of the factory building when it was purchased ten years previously and was not considered a separate component. When purchased, the building had been assumed to have a 30-year useful life and was being depreciated on a straight-line basis. At the time of the floor replacement, the building had been depreciated for 10 years. Cullumber estimated that the original cost of the floor would have been 15% cheaper than the new replacement, due to inflation. Prepare the journal entries to record these transactions, assuming Cullumber follows IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)During the reporting period ending 30 June 2014, Sara Limited erected an oil rig in Noosa River. The cost of the rig and associated technology amounted to $99 000 000. The oil rig commenced production on 1 July 2014. At the end of the rig’s useful life, which is expected to be five (5) years, Sara Limited is required by its resource consent to dismantle the oil rig, remove it, and return the site to its original condition. After consulting its own engineers and environmentalists, Sara Limited estimates that if such work was required to be done at the present time it would cost $14 999 995. If we accept that the rate on 5-year government bonds reflects the relevant time value of money, and if the rate is 4 per cent annually, calculate the present value of the restoration provision which would be today.
