Acquisition Cost of Long-Lived AssetsThe following items represent expenditures (or receipts) related to the construction of a new home office for Norma Company.Cost of land site (which included an old apartment building appraised at 75,000).Legal fees, including fee for title searchPayment of apartment building mortgage and related interest due at time of salePayment for delinquent property taxes assumed by the purchaserCost of razing the apartment buildingProceeds from sale of salvaged materialsGrading to establish proper drainage flow on land siteArchitect's fees on new buildingProceeds from sales of excess dirt (from basement excavation) to owner of adjoining property (dirt was used to fill in a low area on property)Payment to building contractorPayment of medical bills of employee accidentally injured while inspecting building constructionSpecial assessment for paving city sidewalks (paid to city)Cost of paving driveway and parking lotCost of installing lights in parking lotPremium for insurance on building during constructionCost of open house party to celebrate opening of new buildingCheck$180,0002,1009,3006,00019,000000(3,800)2,100310,000(2,000)5,000,000RequiredFrom the given data, calculate the proper balances for the Land, Building, and Land Improvements accounts of Norma Company.Land$Building$Land Improvements $1,60020,00030,0009,5007,80010,000

Introduction:- Cost of fixed assets includes purchase price any other costs incurred up to bring the…

Answered: Required rom the given data, calculate…

Required rom the given data, calculate the proper balances for the Land, Building, and Land Improvements accounts of Norma Company. Land Building Land Improvements $ $ $ 0 0 0

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Question

Acquisition Cost of Long-Lived Assets
The following items represent expenditures (or receipts) related to the construction of a new home office for Norma Company.
Cost of land site (which included an old apartment building appraised at 75,000).
Legal fees, including fee for title search
Payment of apartment building mortgage and related interest due at time of sale
Payment for delinquent property taxes assumed by the purchaser
Cost of razing the apartment building
Proceeds from sale of salvaged materials
Grading to establish proper drainage flow on land site
Architect's fees on new building
Proceeds from sales of excess dirt (from basement excavation) to owner of adjoining property (dirt was used to fill in a low area on property)
Payment to building contractor
Payment of medical bills of employee accidentally injured while inspecting building construction
Special assessment for paving city sidewalks (paid to city)
Cost of paving driveway and parking lot
Cost of installing lights in parking lot
Premium for insurance on building during construction
Cost of open house party to celebrate opening of new building
Check
$180,000
2,100
9,300
6,000
19,000
0
0
0
(3,800)
2,100
310,000
(2,000)
5,000,000
Required
From the given data, calculate the proper balances for the Land, Building, and Land Improvements accounts of Norma Company.
Land
$
Building
$
Land Improvements $
1,600
20,000
30,000
9,500
7,800
10,000

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