The Madison Sign Company purchased land as a factory site for $75,000. Prior to construction of 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 Sale of firewood to a worker Architect fees (for new building) Title investigation of land Property taxes on land (for the first year) Building construction costs Required: Determine the amounts that the company should record in the Land and the Building accounts. (Amounts to be deducted should be indicated by a minus sign.) Architect fees (for new building) Building construction costs Land clearing costs Purchase price of land Sale of firewood to a worker Title investigation of land Totals S Land Building $3,500 (550) 15,000 2,000 1,500 250,000 0$ 0

The Madison Sign Company purchased land as a factory site for $75,000. Prior to construction of 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 Sale of firewood to a worker Architect fees (for new building) Title investigation of land Property taxes on land (for the first year) Building construction costs Required: Determine the amounts that the company should record in the Land and the Building accounts. (Amounts to be deducted should be indicated by a minus sign.) Architect fees (for new building) Building construction costs Land clearing costs Purchase price of land Sale of firewood to a worker Title investigation of land Totals S Land Building $3,500 (550) 15,000 2,000 1,500 250,000 0$ 0

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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