Land purchase Demolition of old building Legal fees for land acquisition Avoidable interest on loan for construction $22,000 3,000 1,500 2,900 53,000 1,200 3,500 18,800 15,000 1,000 12,000 3,000 7,500 2,500 Building construction Assessment by city for sewer connection-city is responsible for maintenance Landscaping (expected to be permanent in nature) Equipment purchased for excavation Pro rata portion of fixed overhead incurred during construction of building Insurance on building during construction Profit on construction Compensation for injury to construction worker (not covered by the insurance policy purchased by Mawn) Modifications to building ordered by building inspectors (due to poor planning by Mawn) Delinquent property taxes on land paid in 2019 (land was purchased during the year)

Land purchase Demolition of old building Legal fees for land acquisition Avoidable interest on loan for construction $22,000 3,000 1,500 2,900 53,000 1,200 3,500 18,800 15,000 1,000 12,000 3,000 7,500 2,500 Building construction Assessment by city for sewer connection-city is responsible for maintenance Landscaping (expected to be permanent in nature) Equipment purchased for excavation Pro rata portion of fixed overhead incurred during construction of building Insurance on building during construction Profit on construction Compensation for injury to construction worker (not covered by the insurance policy purchased by Mawn) Modifications to building ordered by building inspectors (due to poor planning by Mawn) Delinquent property taxes on land paid in 2019 (land was purchased during the year)

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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