Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Windsor, Inc. purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing
the land were as follows: purchase price, $59,200; broker's fees, $6,460; title search and other fees, $5,190; demolition of an old
building on the property, $6,170; grading, $1,450; digging foundation for the road, $3,230; laying and paving driveway, $27,800;
lighting $7,910; signs, $1,980.
List the items and amounts that should be included in the Land account.
$
A
Pina Colada Corp. purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in
purchasing the land were as follows: purchase price, $56,400; broker's fees, $6,440; title search and other fees, $5,440; demolition of
an old building on the property, $6,120; grading, $1,600; digging foundation for the road, $3,350; laying and paving driveway, $27,200
lighting $7,550; signs, $1,680.
List the items and amounts that should be included in the Land account.
$
24
Columbia Company incurred the following expenditures related to the land and building:
Payment for land and old building 1,750,000
Demolition of old building to prepare the land for the
construction of a new building 87,500
Payment to tenants for vacating old building 26,250
Building permit for new construction 52,500
Surveying fee before construction of new building 35,000
Parking lots and driveways (part of building plan) 70,000
Cost of grading, leveling and landfill 78,750
Assessment by city for drainage project 8,750
Construction costs of new building 10,500,000
Temporary quarters for…
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- During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?arrow_forwardDuring the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?arrow_forwardFarley Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $70,000; broker's fees, $6,000; title search and other fees, $5,000; demolition of an old building on the property, $5,700; grading $1,200; digging foundation for the road, $3,000; laying and paving driveway. $25,000; lighting $7,500; signs, $1,500. List the items and amounts that should be included in the Land account. $ $arrow_forward
- Glenwood Industrial Gear, Inc. incurred the following costs associated with the purchase of a piece of land that it will use to build a retail store: Purchase price of the land $450,000 Cash received from Sale of salvaged parts already on land $20,000 Current year property taxes $3,400 Demolition of the old building $30,000 Ground breaking ceremony (food and supplies) $3,500 Back Property Taxes $14,700 Land preparation and leveling $17,500 What amount should Glenwood Industrial Gear, Inc. capitalize for the land asset? Group of answer choicesarrow_forwardNash's Trading Post, LLC purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $55,000; broker’s fees, $6,000; title search and other fees, $5,000; demolition of an old building on the property, $5,700; grading, $1,200; digging foundation for the road, $3,000; laying and paving driveway, $25,000; lighting $7,500; signs, $1,500.List the items and amounts that should be included in the Land account. select an expenditure Digging Foundation for the RoadLand Acquisition CostTitle Search and Other FeesGradingLaying and Paving DrivewayDemolition of Old BuildingPurchase PriceLightingSignsBroker’s Fees $enter a dollar amount select an expenditure Purchase PriceLightingDemolition of Old BuildingTitle Search and Other FeesBroker’s FeesSignsLaying and Paving…arrow_forwardel Salalak Company incurred the following plant asset expenditures and receipts in its first year of operations. The purchase price of the land was RO 285,000. The cost of filling the land was RO 15,000. Cost of demolishing an old building on the land to make land suitable for construction of new factory RO 10,000. Proceeds from salvage of the materials from the old building totalled RO 4,000. Full payment to factory construction contractor RO 300,000. Real estate taxes on land paid at time of purchase RO 4,500. Architect's fees on factory design plans RO8,500. Cost of the fences, parking lots and driveways RO 30,000. What is the total cost of the factory building? Moh O a. RO 314,000 12 O b. None of the options are correct Oc RO 310,500 O d. RO 308,500 10 O e. RO 306,000arrow_forward
- Cala Manufacturing purchases land for $297,000 as part of its plans to build a new plant. The company pays $40,200 to tear down an old building on the lot and $59,426 to fill and level the lot. It also pays construction costs of $1,767,800 for the new building and $111,589 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.arrow_forwardTexas Co. purchased land as a factory site for $1,500,000. Texas paid $200,000 to tear down two buildings on the land. Legal fees of $10,000 were paid for title investigation and making the purchase. Architect's fees were $40,000. Title insurance cost $5,000, and liability insurance during construction cost $4,000. Excavation cost $20,000. The contractor was paid $4,000,000. An assessment made by the city for pavement was $20,000. Interest costs during construction were $200,000. The cost of the land that should be recorded by Texas Co. is?arrow_forwardABC Inc., purchased a used piece of heavy equipment for $25,000. Delivery of the equipment to Padre’s business site cost $750. Expenditures to recondition the equipment and prepare it for use totaled $2,230. Determine the total cost of the Assetarrow_forward
- Cala Manufacturing purchases land for $327,000 as part of its plans to build a new plant. The company pays $35,100 to tear down an old building on the lot and $51,887 to fill and level the lot. It also pays construction costs of $1,278,200 for the new building and $80,684 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet < A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal 1 Record entry Clear entry Debit Credit View generaarrow_forwardCala Manufacturing purchases land for $297,000 as part of its plans to build a new plant. The company pays $27,300 to tear down an old building on the lot and $40,356 to fill and level the lot. It also pays construction costs of $1,791,300 for the new building and $113,072 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Land 297,000 Building Land improvements Record entry Clear entry View generaarrow_forwardCala Manufacturing purchases land for $459,000 as part of its plans to build a new plant. The company pays $39,800 to tear down an old building on the lot and $58,835 to fill and level the lot. It also pays construction costs of $1,498,000 for the new building and $94,558 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View generaarrow_forward
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