FINANCIAL ACCOUNTING: TOOL
FINANCIAL ACCOUNTING: TOOL
9th Edition
ISBN: 9781119598305
Author: Kimmel
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 9, Problem 9.1AP
To determine

Type of costs: The cost of land and building includes the following costs:

  • Purchase price of land
  • Attorney fees
  • Real estate agent commission
  • Title
  • Recording fees
  • Legal fees
  • Architect fees
  • Building construction costs
  • Interest costs related to the construction
  • Sale of salvaged materials
  • Additional expenses :
    • Clearing
    • Filling and leveling of land
    • Removing of old buildings

To analyze: the transactions relating to land, building, and other accounts.

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