Sandhill Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's fee for title search Architect's fees Cash paid for land and dilapidated building thereon Removal of old building Less: Salvage Interest on short-term loans during construction Excavation before construction for basement Machinery purchased (subject to 2% cash discount, which was not taken) Freight on machinery purchased Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered New building constructed (building construction took 6 months from date of purchase of land and old building) Assessment by city for drainage project Hauling charges for delivery of machinery from storage to new building Installation of machinery Trees, shrubs, and other landscaping after completion of building w Transcribed Text stallation of machinery ees, shrubs, and other landscaping after completion of building permanent in nature) Land $27,000 7.425 Buildings $702 4,280 117.450 19.575 9.990 25,650 74,250 1,809 2,943 654,750 2.160 837 2,700 2,700 ermine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of italizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please we spaces blank if there is no answer. Do not enter zeros in those spaces.) 7,290
Sandhill Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's fee for title search Architect's fees Cash paid for land and dilapidated building thereon Removal of old building Less: Salvage Interest on short-term loans during construction Excavation before construction for basement Machinery purchased (subject to 2% cash discount, which was not taken) Freight on machinery purchased Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered New building constructed (building construction took 6 months from date of purchase of land and old building) Assessment by city for drainage project Hauling charges for delivery of machinery from storage to new building Installation of machinery Trees, shrubs, and other landscaping after completion of building w Transcribed Text stallation of machinery ees, shrubs, and other landscaping after completion of building permanent in nature) Land $27,000 7.425 Buildings $702 4,280 117.450 19.575 9.990 25,650 74,250 1,809 2,943 654,750 2.160 837 2,700 2,700 ermine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of italizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please we spaces blank if there is no answer. Do not enter zeros in those spaces.) 7,290
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sandhill Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to
Machinery and Equipment.
Abstract company's fee for title search
Architect's fees
Cash paid for land and dilapidated building thereon
Removal of old building
Less: Salvage
Interest on short-term loans during construction
Excavation before construction for basement
Machinery purchased (subject to 2% cash discount, which was not taken)
Freight on machinery purchased
Storage charges on machinery, necessitated by noncompletion of
building when machinery was delivered
New building constructed (building construction took 6 months from
date of purchase of land and old building)
Assessment by city for drainage project
Hauling charges for delivery of machinery from storage to new building
Installation of machinery
Trees, shrubs, and other landscaping after completion of building
Show Transcribed Text
Installation of machinery
Trees, shrubs, and other landscaping after completion of building
(permanent in nature)
Land
702
117450
$
Buildings
4,200
|||
9,990
C
25.650
$27,000
7,425
$
$702
4,280
117.450
19.575
9.990
25,650
Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits
capitalizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please
leave spaces blank if there is no answer. Do not enter zeros in those spaces.)
74,250
1,809
2,943
654,750
2,160
837
2,700
2,700
7,290
Machinery and Equipment
||||||
72.765
Other
-Question
|II||
1485
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