Landscaping began constructio new plant thousand date, the company purchased a parcel of land for ¥180,700 in cash. In addition, it paid ¥2,600 in surveying costs and ¥5,200 for a title insurance policy. Ar old dwelling on the premises was demolished at a cost of ¥3,900, with ¥1,300 being received from the sale of materials. Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥39,000. The necessary building permits costing ¥3,900 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 2023 as follows. Date of Payment March 1 May 1 July 1 Amount of Payment ¥312,000 429,000 78,000

Landscaping began constructio new plant thousand date, the company purchased a parcel of land for ¥180,700 in cash. In addition, it paid ¥2,600 in surveying costs and ¥5,200 for a title insurance policy. Ar old dwelling on the premises was demolished at a cost of ¥3,900, with ¥1,300 being received from the sale of materials. Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥39,000. The necessary building permits costing ¥3,900 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 2023 as follows. Date of Payment March 1 May 1 July 1 Amount of Payment ¥312,000 429,000 78,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Jacobson Company purchased a parcel of land for a new office building. The cost of the land was $310,000. An old building on the property wad demolished and construction began on the new building. All of this activity occurred within the same year. Costs included demolition ($37,000), architect fees on the new building design ($64,000), legal fees for land title investigation ($3,100), and construction ($768,000). At what amount should Jacobson Company record the cost the cost of the building? A B C D $768,000 $832,000 $869,000 $1,078,000
A 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. is
XYZ Company had the following transactions pertaining to its new office building: Purchase price of land -P1,200.000; Legal fees for contracts to purchase land -P130,000; Architect's fee - P255,000: Demolition of old building on site -P310.000; Sale of scrap from old building -P71,000; Construction cost of new building (fully completed) -P2.450,000: Fire insurance policy on the newly constructed building for the whole year starting on the day it was completed -P250.000. At what amount should the building be shown in XYZ statement of financial position of?
Texas 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?
Determining cost of land On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $28,000 in cash and giving a short-term note for $258,000. Legal fees paid were $1,565, delinquent taxes assumed were $10,000, and fees paid to remove an old building from the land were $20,000. Materials salvaged from the demolition of the building were sold for $4,300. A contractor was paid $869,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.fill in the blank 1 of 1$
On January 1, 2018, Monster Bar & Grill purchased a building, paying $55,000 cash and signing a $107,000 note payable. The company paid another $61,000 to remodel the building. Furniture and fixtures cost $53,000, and dishes and supplies—a current asset—were obtained for $8,700. All expenditures were for cash. Assume that all of these expenditures occurred on January 1, 2018. depreciation information: Monster is depreciating the building over 25 years using the straight-line method, with estimated residual value of $59,000. The furniture and fixtures will be replaced at the end of five years and are being depreciated using thedouble-declining-balance method, with a residual value of zero. At the end of the first year, the company still had dishes and supplies worth $1,500. Show what the company will report for supplies, plant assets, and cash flows at the end of the first year on its income statement, balance sheet, and statement of cash flows. Begin with…
K- Belvidere Furniture purchased land, paying $95,000 cash and signing a $280,000 note payable. In addition, Belvidere paid delinquent property tax of $5,000, title insurance costing $1,500, and $8,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $400,000. It also paid $51,000 for a fence around the property, $13,000 for a sign near the entrance, and $3,000 for special lighting of the grounds. Read the requirements. Requirement 1. Determine the cost of the land, land improvements, and building. The cost of the land is $ 389,500 The total cost of the land improvements is Requirements 1. Determine the cost of the land, land improvements, and building. 2. Which of these assets will Belvidere depreciate? Print Done - X
Cala 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 genera
Murphy 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