The City of Southern Pines, during the year, incurred expenditures for capital outlays amounting to $22,500,000.Depreciation incurred for the year was calculated to be $1,500,000. (2 entries - 2 points).1☑ Ff▾ A BIIIIIII The City of Southern Pines maintains its books so as to prepare fund accounting statements and prepares worksheetadjustments in order to prepare government-wide financial statements. You are to prepare, in journal form,worksheet adjustments for each of the following situations. Use the account titles presented during the first 4weeks where appropriate. Use the account title referred to in the question for all other entries (generalobligation bonds = Bonds Payable).

Worksheet Adjustments for City of Southern Pines (Government-Wide Basis)Scenario 1: Recording…

Answered: The City of Southern Pines, during the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Larkspur Inc. is constructing a building. Construction began on March 1 and was completed on December 31. Expenditures were $732,000 on March 1, $976,000 on July 1, and $878,400 on December 1. Compute Larkspur's weighted-average accumulated expenditures for interest capitalization purposes. Weighted-Average Accumulated Expenditures %24
A-1
Using the following information, determine the net operating income (NOI) for the first year of operations of the subject property using "above-line" treatment of capital expenditures. Subject Property Number of apartments Market rent (per month) Vacancy and collection losses Operating expenses Capital expenditures O $135,000 $162,000 $137.700 $153,900 15 1000 10% of PGI 5% of EGI 10% of EGI
Jugular Company started construction on a building on January 1 of the current year and completed construction on December 31 of the same year. The entity had only two interest-bearing notes outstanding during the year, and both of these notes were outstanding for all 12 months of the year.The following information is available:Average accumulated expenditures 2,500,000Ending balance in construction in progress beforecapitalization of interest 3,600,0006% note incurred specifically for the project 1,500,0009% long-term note 5,000,000What is the total cost of the building?a. 3,780,000b. 3,680,000c. 3,750,000d. 3,825,000
[Fact Pattern #1] Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable income for the current year, its first year of operations: Pretax financial income $160,000 Nontaxable interest received on municipal securities Long-term loss accrual in excess (5,000) of deductible amount 10,000 Depreciation in excess of financial statement amount (25,000) Taxable income $140,000 Zeff's tax rate is 40%. [1] ( Refers to Fact Pattern 1) In its current-year income statement, what amount should Zeff report as income tax expense – current portion? A. $52,000 B. $56,000 C. $62,000 D. $64,000
1
intruction: C&M Securities made several expenditures during the current fiscal year, including the following: Amount Description of Expenditure 1. $150,000 Acquisition of a piece of land to be used as a building site 2. 3,000 Demolition of a small building on the land, to make way for the new building 3. 7,500 Levelling of the land to prepare it for construction of the new building 4. 290,000 Construction of the new building 5. 12,000 Paving of a parking lot beside the building 6. 6,000 Addition of decorative landscaping around the building (such as planting flowers and ornamental shrubs) 7. 80,000 Purchase of a new piece of equipment 8. 6,000 Sales taxes on the new equipment 9. 3,000 Installation of the new equipment 10. 1,500 Testing and adjustment of the new equipment prior to its use 11. 1,000 Minor repairs to some old equipment 12. 7,000 Major overhaul of an old piece of equipment, extending its useful life by three years 13. 1,200 Routine maintenance of equipment 14. 2,000…
Assume $74,000 is going to be invested in each of the following assets. Using Table 12-11 and Table 12-12. Indicate the dollar amount of the first year's depreciation. a. Office furniture b. Automobile c. Electric and gas utility property d. Sewage treatment plant First Year's Depreciation
Entity A is a newly formed government agency. Entity A's transactions and events during the calendar year 20xl are follows: a. Received appropriation of 500,000 b. Received allotment of 450,000. c. Incurred obligations amounting to 440,000. d. Received Notice of Cash Allocation of 430,000. e. Accrued P80,000 salaries through granting, and liquidation, of cash advance. The breakdown of the salaries is as follows: Salaries and Wages = 70,000 Personal Economic Relief Allowance (PERA) = 10,000 Gross Compensation = 80,000 Withholding Tax = 18,000 GSIS = 4,000 Pag-IBIG = 1,000 PhilHealth = 2,000 Total Salary Deductions = 25,000 f. Received delivery of purchased office equipment worth 200,000. The equipment has an estimated useful life of 5 years and a 5% residual value. Entity A recognizes monthly depreciation every end of the month using the straight line method. The equipment is acquired on January 1, 20x1. g. Paid the accounts payable from the purchase of equipment in (f)…
ABC begins the construction of a building on 1 January 20X1. The following expenditures on this property incurred during the year 20X1: (Unit: CU 1000)1 January 20X1 – 100,0001 June 20X1 – 300,0001 October 20X1 – 600,000On 1 January 20X1, Entity A had 500,000 of general borrowings which increased by 1 million to 1.5 million in total on 1 June 20X1. Interest expense on these borrowings calculated to 50,000 for full-year 20X1.Calculate the amount relating to borrowing cost that should be capitalized in the cost of the building?
Mendenhall Corporation constructed a building at a cost of $14,000,000. Weighted-average accumulated expenditures were $5,600,000, actual interest was $560,000, and interest rate on the borrowings during the construction period was 7%. The total cost of the building including the capitalized interest is Select one: a. $14,840,000. b. $14,336,000. O c. $14,560,000. d. $14,392,000.
Bha

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