On March 1, 2024, Beldon Corporation purchased land as a factory site for $66,000. An old building on the propertywas demolished, and construction began on a new building that was completed on December 15, 2024. Costs incurredduring this period are listed below:Demolition of old buildingArchitect's fees (for new building)Legal fees for title investigation of landProperty taxes on land (for period beginning March 1, 2024)Construction costsInterest on construction loan$ 7,00018,0005,0003,600560,0008,000Salvaged materials resulting from the demolition of the old building were sold for $2,600.Required:Determine the amounts that Beldon should capitalize as the cost of the land and the new building.Complete this question by entering your answers in the tabs below.Cost of LandCost of NewBuildingDetermine the amounts that Beldon should capitalize as the cost of the land.Note: Amounts to be deducted should be indicated with a minus sign.Capitalized cost of land:Total cost of land

Step 1: Identify the initial cost of the land.The initial purchase cost of the land is $66,000.Step…

Answered: On March 1, 2024, Beldon Corporation…

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

On March 1, 2024, Beldon Corporation purchased land as a factory site for $72,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2024. Costs incurred during this period are listed below: Demolition of old building Architect's fees (for new building) Legal fees for title investigation of land Property taxes on land (for period beginning March 1, 2024) Construction costs Interest on construction loan $ 5,000 11,000 8,000 4,200 620,000 6,000 Salvaged materials resulting from the demolition of the old building were sold for $3,200. Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building. Complete this question by entering your answers in the tabs below. Cost of Land Cost of New Building Determine the amounts that Beldon should capitalize as the cost of the land. Note: Amounts to be deducted should be indicated with a minus sign. Capitalized cost of land: Total…
What is the initial value of land?
On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2025. Expenditures on the project were as follows: January 1, 2024 March 1, 2024 June 30, 2024 October 1, 2024 January 31, 2025 April 30, 2025 August 31, 2025 On January 1, 2024, the company obtained a $3 million construction loan with a 12% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2024 and 2025. The company's other interest-bearing debt included two long-term notes of $5,500,000 and $7,500,000 with interest rates of 7% and 9%, respectively. Both notes were outstanding during all of 2024 and 2025. Interest is paid annually on all debt. The company's fiscal year-end is December 31. $ 1,200,000 690,000 450,000 660,000 945,000 1,260,000 2,250,000 Required: Using the weighted-average interest method, answer the following questions: 1.…
Accounting In early 2019, ETI incurred significant costs to renovate two of its existing theatres in order toconvert them into Experience Plus theatres. These two theatres are located in buildings that ETIowns. Details of costs incurred to construct and promote the Experience Plus theatres are asfollows:Removal of seating $ 10,000Purchase of new seating $ 92,000Installation of new seating $ 8,000Addition of kitchen facilities $ 70,000Advertising and promotion of new theatres $200,000Interest on renovation loan $ 28,000 These costs were capitalized and added to the carrying value of the buildings. Under ASPE, should the cost be capitalized or expensed?
dev
Dalton Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2021 and was completed in 2022. Data relating to the construction are: Costs incurred during the year Estimated costs to complete Dalton uses the percentage-of-completion method. 2021 $3,300,000 2,700,000 2022 $2,750,000 Instructions (a) How much revenue should be reported for 2021? Show your computation. (b) Make the entry to record progress billings of $4,100,000 during 2021. (c) Make the entry to record the revenue and gross profit for 2021. (d) How much gross profit should be reported for 2022? Show your computation.
On January 1, 2021, LMT Inc. acquired a piece of land to construct a new office building. You have the following information about this transaction: Price of land $180,000 Tax on purchase of land 5% of price Legal fees to transfer property of land to LMT $4,500 Cost of demolishing old building on land 5,600 Income from sale of windows of old building demolished 500 Cost of new office building foundation 23,400 Cost of office building construction 460,000 Cost of insurance during construction 2,000 Cost to repair a piece of equipment used in the office building’s construction 1,000 Cost of annual insurance on office building after the construction is finished 6,000 LMT management decided to allocate the following amounts to the parts of the office building, and estimated the corresponding useful lives and residual values as follows: Allocated cost Useful life Residual value Windows $50,000 10 years…
On July 1, 2024, a company purchased a $550,000 tract of land that is intended to be the site of a new office complex. The company incurred additional costs and realized salvage proceeds during 2024 as follows: Demolition of existing building on site $ 72,000 Legal and other fees to close escrow 12,400 Proceeds from sale of demolition scrap 9,800 What would be the balance in the land account as of December 31, 2024?
On January 2, 2020, Bonita Industries began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows: January 2, 2020 $ 609000 September 1, 2020 1802400 December 31, 2020 1802400 March 31, 2021 1802400 September 30, 2021 1203000 Bonita Industries borrowed $3400000 on a construction loan at 12% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $13320000 in 9% bonds outstanding in 2020 and 2021.The interest capitalized for 2020 was: A)$505656 B)$108882 C)$145176 D)$289368
Determine the Cost of Land Village Delivery Company purchased a lot to construct a new warehouse for $243,000, paying $28,000 in cash and giving a short-term note for the remainder. Legal fees paid in connection with the purchase were $2,075, delinquent taxes assumed were $12,300, and fees paid to remove an old building from the land were $17,400. Materials salvaged from the demolition of the building were sold for $4,100. A contractor was paid $823,800 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. X
China Express purchased land for $140,000. Prior to construction on the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below: Land clearing costs $ 5,000 Architect fees (for new building) 30,000 Legal fees for title investigation of land 1,000 Property taxes on land (for the first year) 2,500 Building construction costs 440,000 Required:Determine the amounts that should be recorded in the land and the new building accounts.
On January 1, 2020, Williamsburg Inc. acquired a piece of land to construct a manufacturing plant. You have the following information about this transaction: $240,000 4% of price $5,000 Price of land Tax on transfer of land Legal free to transfer property of land to Williamsburg $6,000 $1,000 $860,000 $2,100 $6,400 Cost of demolishing old building on the land Income from scrap that was sold of old building Cost of manufacturing building construction Cost of insurance during construction Cost of annual insurance on manufacturing building after the construction is finished Cost to repair a piece of equipment used in the $1,000 factories construction Management decided to allocate the following amounts to the parts of the factory building, and estimated the corresponding useful lives and residual values as follows: Allocated cost Useful life Residual value Allocated Cost Useful Life Residual Value $20,000 $1,000 $0 $4,000 $10,000 Windows 10 years $20,000 $100,000 Furnace 10 years…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS