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In: Accounting

1. The Howell’s decided to build a resort hotel on land owned by Chief Ugundi. For...

1. The Howell’s decided to build a resort hotel on land owned by Chief Ugundi. For each of the following items, indicate whether the cost should be recorded as Land (L), Land Improvements (LI), Resort Hotel (RH), or Equipment (E) by placing the correct answer in the space provided. Answer Fences around the property site cost $50,000 Construction of the resort hotel cost $5,000,000 Demolition of existing huts on the land cost $80,000 Installation of wooden sidewalks between the resort hotel and parking lot cost $40,000 Architectural fees for the resort hotel cost $30,000 A construction permit obtained from Chief Ugundi cost $20,000 Clearing the brush and removing unwanted trees on the site cost $60,000 Purchased a wagon to assist with hauling away trees and dirt for $25,000 The Professor charged $40,000 to act as engineer and architect on the resort hotel Constructing permanent tiki torches around the site as lighting cost $10,000 Landscaping (shrubs and decorative ornaments) around the resort cost $100,000 The actual purchase price for the land cost $200,000

Solutions

Expert Solution

Costs Type
Fences around the property site cost $ 50000 Land Improvements
Construction of the resort hotel cost $ 5000000 Resort Hotel
Demolition of existing huts on the land cost $ 80000 Land Improvements
Installation of wooden works between the resort hotel and parking lot cost $ 40000 Resort Hotel
Architectural fees for the resort hotel cost $ 30000 Resort Hotel
A construction permit obtained from chief Ugundi cost $ 20000 Land
Cleaning the brush and removing unwanted trees on the site cost $ 600000 Land Improvements
Purchased a wagon to assist with hauling away trees and dirt for $ 25000 Equipment
The professor charged $ 40000 to act as engineer and architect on the resort hotel Resort Hotel
Constructing permanent tiki torches around the site as lighting cost $ 10000 Land Improvements
Land scaping ( shrubs and decorative ornaments) around the resort cost $ 10000 Land Improvements
The actual purchase price for the land cost $ 200000 Land

ekkarill92 answered 3 years ago
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