Question
In: Accounting
The following expenditures and receipt(s) are either related to land, land improvements, or buildings acquired for...
The following expenditures and receipt(s) are either related to land, land improvements, or buildings acquired for use in a business enterprise. Receipts are enclosed in parentheses.
Identify each item below by writing either land, land improvements or buildings below the item:
Interest paid during construction on money borrowed for construction 13,000
Cost of parking lots and driveways 19,000
Cost of trees and shrubbery planted (permanent in nature) 14,000
Refund of 1-month insurance premium because construction completed
Early (1,000)
Architect’s fee on building 22,000
Cost of real estate purchased as a plant site (land $200,000 & building $50,000) 250,000
Commission fee paid to real estate agency 9,000
Installation of fences around property 4,000
Excavation costs for new building 3,000
Proceeds from salvage of demolished building (5,000)
Solutions
Expert Solution
| Land | Land Improvement | Building | |
| Interest paid during construction on money borrowed for construction | 13,000 | ||
| Cost of parking lots and driveways | 19,000 | ||
| Cost of trees and shrubbery planted (permanent in nature) | 14,000 | ||
| Refund of 1-month insurance premium because construction completed Early | (1,000) | ||
| Architect’s fee on building | 22,000 | ||
| Cost of real estate purchased as a plant site | 250,000 | ||
| Commission fee paid to real estate agency | 9,000 | ||
| Installation of fences around property | 4,000 | ||
| Excavation costs for new building | 3,000 | ||
| Proceeds from salvage of demolished building | (5,000) | ||
ekkarill92 answered 2 years agoRelated Solutions
The following expenditures are related to land, land improvements, and buildings acquired for use in a...
The following expenditures are related to land, land
improvements, and buildings acquired for use in a business
enterprise. Determine how they should be classified (building/land
or both and direct or indirect).
Money borrowed to pay building contractors:
Payment for construction from note proceeds:
Cost of land fill and clearing:
Delinquent real estate taxes on property assumed:
Premium on 6-month insurance policy during construction
Refund of 1-month insurance premium because construction
completed early
Architect’s fees on building
Cost of real estate...
The following expenditures are related to land, land improvements and buildings, which were acquired on November...
The following expenditures are related to land, land
improvements and buildings, which were acquired on November 1,
2015.
Cost of real estate acquired for a new manufacturing plant
S365,000 (the land is appraised for $262,800 and the building for
$102,200)
Real estate taxes paid by the purchaser......$20,000
Cost of removing a barn..... $8,500
Architect's fees for updating the building..... $6750
Attorneys fees for closing the sale..... $12500
Grading land.... $3500
paving parking lot......$7000
Planting trees and shrubs.......$9250
Cost of repairs...
Exercise 10-1 The expenditures and receipts below are related to land, land improvements, and buildings acquired...
Exercise 10-1
The expenditures and receipts below are related to land, land
improvements, and buildings acquired for use in a business
enterprise. The receipts are enclosed in parentheses.
(a)
Money borrowed to pay building contractor (signed a note)
$(276,500
)
(b)
Payment for construction from note proceeds
276,500
(c)
Cost of land fill and clearing
11,220
(d)
Delinquent real estate taxes on property assumed by
purchaser
8,340
(e)
Premium on 6-month insurance policy during construction
12,060
(f)
Refund of 1-month...
Exercise 10-1 The expenditures and receipts below are related to land, land improvements, and buildings acquired...
Exercise 10-1
The expenditures and receipts below are related to land, land
improvements, and buildings acquired for use in a business
enterprise. The receipts are enclosed in parentheses.
(a)
Money borrowed to pay building contractor (signed a note)
$(276,500
)
(b)
Payment for construction from note proceeds
276,500
(c)
Cost of land fill and clearing
11,220
(d)
Delinquent real estate taxes on property assumed by
purchaser
8,340
(e)
Premium on 6-month insurance policy during construction
12,060
(f)
Refund of 1-month...
The following payments and receipts are related to land, land improvements, and buildings acquired for use...
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.
a.
Architect's and engineer's fees for plans and supervision
80,000
b.
Cost of filling and grading land
30,000
c.
Cost of removing building purchased with land in (e)
10,000
d.
Cost of paving parking lot to be used by customers
25,000
e.
Cost of real estate acquired as a plant site: Land...
The following payments and receipts are related to land, land improvements, and buildings acquired for use...
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.
a.
Fee paid to attorney for title search
$3,600
b.
Cost of real estate acquired as a plant site: Land
720,000
Building
(to be demolished)
60,000
c.
Finder’s fee paid to real estate agency
23,400
d.
Delinquent real estate taxes on property, assumed by
purchaser
15,000
e.
Architect’s and engineer’s fees...
The following payments and receipts are related to land, land improvements, and buildings acquired for use...
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
$2,500
b.
Cost of real estate acquired as a plant site: Land
285,000
Building
(to be demolished)
55,000
c.
Delinquent real estate taxes on property, assumed by
purchaser
15,500
d.
Cost of razing and removing building acquired in (b)
5,000
e.
Proceeds from...
Windsor Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings,...
Windsor Supply Company, a newly formed corporation, incurred the
following expenditures related to Land, to Buildings, and to
Machinery and Equipment.
Abstract company’s fee for title
search
$780
Architect’s fees
4,755
Cash paid for land and dilapidated
building thereon
130,500
Removal of old building
$30,000
Less:
Salvage
8,250
21,750
Interest on short-term loans during
construction
11,100
Excavation before construction for
basement
28,500
Machinery purchased (subject to 2%
cash discount, which was not taken)
82,500
Freight on machinery purchased
2,010
Storage...
Oriole Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings,...
Oriole Supply Company, a newly formed corporation, incurred the
following expenditures related to Land, to Buildings, and to
Machinery and Equipment.
Abstract company’s fee for title search
$936
Architect’s fees
5,706
Cash paid for land and dilapidated building thereon
156,600
Removal of old building
$36,000
Less: Salvage
9,900
26,100
Interest on short-term loans during construction
13,320
Excavation before construction for basement
34,200
Machinery purchased (subject to 2% cash discount, which was not
taken)
99,000
Freight on machinery purchased
2,412
Storage...
Riverbed Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings,...
Riverbed Supply Company, a newly formed corporation, incurred
the following expenditures related to Land, to Buildings, and to
Machinery and Equipment.
Abstract company’s fee for title search
$858
Architect’s fees
5,231
Cash paid for land and dilapidated building thereon
143,550
Removal of old building
$33,000
Less: Salvage
9,075
23,925
Interest on short-term loans during construction
12,210
Excavation before construction for basement
31,350
Machinery purchased (subject to 2% cash discount, which was not
taken)
90,750
Freight on machinery purchased
2,211
Storage...
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