Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Question
Chapter 9, Problem 1PB
1.
To determine
Identify each item by letter and the list the amounts in columnar form.
2.
To determine
Calculate the amount debited to Land, Land Improvements, and Building.
3.
To determine
Elaborate the contradictory application of the concept of depreciation for Land and Land Improvements.
4.
To determine
Determine and explain the effect on the current year’s income statement and
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Instructions:
Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title.
Item, Land, Land Improvements, Buildings, and Other Accounts.
Allocating Payments and Receipts to Fixed Asset Accounts
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are
identified by an asterisk.
a. Fee paid to attorney for title search
b. Cost of real estate acquired as a plant site: Land
C.
Delinquent real estate taxes on property, assumed by purchaser
Cost of tearing down and removing building acquired in (b)
e. Proceeds from sale of salvage materials from old building
f. Special assessment paid to city for extension of water main to the property
g. Architect's and engineer's fees for plans and supervision
h. Premium on one-year insurance policy during construction
i. Cost of filling and grading land
d.
j.
k.
I.
m.
n.
0.
P.
q.
r.
Building (to be demolished)
S.
Money borrowed to pay building contractor
Cost of repairing windstorm damage during construction
Cost of paving parking lot to be used by customers
Cost of trees and shrubbery…
The following payments and receipts are related to land, land improvements, and buildings
acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk.
a. Fee paid to attorney for title search ....
b. Cost of real estate acquired as a plant site: Land....
$ 2,500
285,000
Building (to be demolished).
55,000
c. Delinquent real estate taxes on property, assumed by purchaser .
d. Cost of tearing down and removing building acquired in (b)
e. Proceeds from sale of salvage materials from old building
Special assessment paid to city for extension of water main to the property...
g. Architect's and engineer's fees for plans and supervision ...
h. Premium on one-year insurance policy during construction..
Cost of filling and grading land ......
j. Money borrowed to pay building contractor.
k. Cost of repairing windstorm damage during construction
Cost of paving parking lot to be used by customers
m. Cost of trees and shrubbery planted
n. Cost of floodlights…
Chapter 9 Solutions
Financial And Managerial Accounting
Ch. 9 - ONeil Office Supplies has a fleet of automobiles...Ch. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Keyser Company purchased a machine that has a...Ch. 9 - Prob. 7DQCh. 9 - A. Under what conditions is the use of an...Ch. 9 - Prob. 9DQCh. 9 - Prob. 10DQ
Ch. 9 - Straight-line depreciation A building acquired at...Ch. 9 - Units-of-activity depreciation A truck acquired at...Ch. 9 - Double-declining-balance depreciation A building...Ch. 9 - Revision of depreciation Equipment with a cost of...Ch. 9 - Capital and revenue expenditures On February 14,...Ch. 9 - Sale of equipment Equipment was acquired at the...Ch. 9 - Prob. 7BECh. 9 - Prob. 8BECh. 9 - Fixed asset turnover ratio Select financial...Ch. 9 - Costs of acquiring fixed assets Melinda Stoffers...Ch. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Nature of depreciation Tri-City Ironworks Co....Ch. 9 - Straight-line depreciation rates Convert each of...Ch. 9 - Straight-line depreciation A refrigerator used by...Ch. 9 - Depreciation by units-of-activity method A...Ch. 9 - Depreciation by units-of-activity method Prior to...Ch. 9 - Depreciation by two methods A Kubota tractor...Ch. 9 - Depreciation by two methods A storage tank...Ch. 9 - Partial-year depreciation Equipment acquired at a...Ch. 9 - Revision of depreciation A building with a cost of...Ch. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Capital expenditure and depreciation Willow Creek...Ch. 9 - Entries for sale of fixed asset Equipment acquired...Ch. 9 - Disposal of fixed asset Equipment acquired on...Ch. 9 - Prob. 19ECh. 9 - Kleen Company acquired patent rights on January 10...Ch. 9 - Prob. 21ECh. 9 - Prob. 22ECh. 9 - Asset traded for similar asset A printing press...Ch. 9 - Prob. 24ECh. 9 - Prob. 25ECh. 9 - Prob. 26ECh. 9 - Prob. 1PACh. 9 - Comparing three depreciation methods Dexter...Ch. 9 - Depreciation by three methods; partial years...Ch. 9 - Depreciation by two methods; sale of fixed asset...Ch. 9 - Transactions for fixed assets, including sale The...Ch. 9 - Prob. 6PACh. 9 - Prob. 1PBCh. 9 - Comparing three depreciation methods Waylander...Ch. 9 - Depreciation by three methods; partial years...Ch. 9 - Depreciation by two methods; sale of fixed asset...Ch. 9 - Transactions for fixed assets, including sale The...Ch. 9 - Prob. 6PBCh. 9 - Compare Amazon.com to Netflix Amazon.com, Inc....Ch. 9 - Prob. 2MADCh. 9 - Prob. 3MADCh. 9 - Compare Fed Ex and UPS FedEx Corporation (FDX) and...Ch. 9 - Prob. 5MADCh. 9 - Revising depreciation estimates Hard Bodies Co. is...Ch. 9 - Communication Godwin Co. owns three delivery...Ch. 9 - Prob. 4TIF
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Similar questions
- The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. Instructions 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicate receipts by an asterisk. Identify each item by letter and list the amounts in columnar form, as follows: 2. Determine the amount debited to Land, Land Improvements, and Building. 3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation. 4. What would be the effect on the current years income statement and balance sheet if the cost of filling and grading land of 12,000 [payment (i)] was incorrectly classified as Land Improvements rather than Land? Assume that Land Improvements are depreciated over a 20-year life using the double-declining-balance method.arrow_forwardAllocate payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. Instructions Determine the increases to Land, Lind Improvements. and Building.arrow_forwardThe following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. a. b. C. d. e. f. g- h. i. j. k. 1. m. n. O. P. Item a. b. C. d. e. f. g h. i. j. Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title. (Enter receipt amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). If no entry is required in other accounts, select "No Entry" for the account titles.) k. I. m. n. 0. Money borrowed to pay building contractor (signed a note) Payment for construction from note proceeds p. Cost of land fill and clearing Delinquent real estate taxes on property assumed by purchaser Premium on 6-month insurance policy during construction Refund of 1-month insurance premium…arrow_forward
- Land improvements include: Oa. surveying fees. Ob. sales tax. Oc. freight. С. Od. outdoor lighting.arrow_forwardClassifying assets Identify each of the following as (A) a current asset or (B) property, plant, and equipment: 1. Accounts Receivable 2. Building 3. Cash 4. Equipment 5. Prepaid Insurance 6. Suppliesarrow_forwardJournal entry worksheet < 2 Record amortization of the goodwill (an intangible asset with an indefinite life). Note: Enter debits before credits. Transaction b. Record entry General Journal Clear entry Debit Credit View general journalarrow_forward
- Matching Type A. Intangible Assets B. Contra asset C. Allowance for doubtful Accounts D. Current liabilities E. Unearned Revenues F. Accumulated Depreciation G. Permanent Accounts H. Report Form I. Prepaid expenses J. Account Form Required: From the list of terms above, select the one that relates to each of the following statements: 1. The balance in this account is deducted from the cost of the related asset- equipment or buildings-to obtain book value. 2. It expects to settle the liability in its normal operating cycle. 3. A form of the SFP that shows asset accounts first and then liabilities and owner's equity accounts after. 4. Are those accounts that are presented under the assets portion of the SFP but are reductions to the company's assets. 5. This represents the estimated amount that the company may not be able to collect from delinquent customers. 6. A form of the SFP that shows assets on the left side and liabilities and owner's equity on the right side. 7. Their balances…arrow_forwardWhich of the following accounts would be classified as a current asset? Group of answer choices land machinery accounts receivable equipmentarrow_forwardWhen writing journal entries for recording assets, what is the end result in the account: Group of answer choices Aggregate cost of the asset Cost, net of preparation costs. Proceeds paid to employees Only the net depreciable costsarrow_forward
- Analyze and review the following items and determine the appropriate journal entry. Record the journal entryarrow_forwardIndicate in the blank spaces below, the section of the balance sheet where the following items are reported. Use the following code to identify your answer: PPE Property, Plant, and Equipment I Intangibles O Other N/A Not on the balance sheet _____ 1.Goodwill ______ 6. Research and Development Costs _____ 2.Land Improvements ______ 7. Land _____ 3.Buildings ______ 8. Franchises _____ 4.Accumulated Depreciation ______ 9. Licenses _____ 5.Trademarks ______ 10. Equipmentarrow_forwardWhat accounting treatment is normally given to the following items in accounting for plant assets? a. Additions. b. Major repairs. c. Improvements and replacements.arrow_forward
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