Novak supply company a newly formed corporation , incurred the following expenditures related to the land , to buildings, and to machinery and equipment. abstract company's fee for title search $1,170 architect's fee $7,133 cash paid for land and dilapidated building thereon $195,750 removal of old building $45,000 LESS: salvage $12,375 $32,625 Interest on short term loans during construction $16,650 Excavation before construction for basement $42,750 Machinery purchased (subject to 2% cash discount, which was not taken) $123,750 Freight on machinery purchased $3,015 Storage charges on machinery, neccesitated by noncompletion of building when machinery was delivered. $4,905 New building constructed (building contrsuction took 6 months from date of purchase of land and old building) $1,091,250 Assessment by city for drainage project $3,600 Hauling charges for delivery of machinery from storage to new building $1,395 Installation of machinery $4,500 Trees, shrubs, and other landscaping after completion of building (permanent in nature) $12,150 Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Indicate how any costs not debited to these accounts should be recorded. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)
Novak supply company a newly formed corporation , incurred the following expenditures related to the land , to buildings, and to machinery and equipment.
abstract company's fee for title search $1,170
architect's fee $7,133
cash paid for land and dilapidated building thereon $195,750
removal of old building $45,000
LESS: salvage $12,375 $32,625
Interest on short term loans during construction $16,650
Excavation before construction for basement $42,750
Machinery purchased (subject to 2% cash discount, which was not taken) $123,750
Freight on machinery purchased $3,015
Storage charges on machinery, neccesitated by noncompletion of building
when machinery was delivered. $4,905
New building constructed (building contrsuction took 6 months from date
of purchase of land and old building) $1,091,250
Assessment by city for drainage project $3,600
Hauling charges for delivery of machinery from storage to new building $1,395
Installation of machinery $4,500
Trees, shrubs, and other landscaping after completion of building
(permanent in nature) $12,150
Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Indicate how any costs not debited to these accounts should be recorded. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)
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