Question

In: Accounting

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 insurance premium because construction completed early (2,010 )
(g) Architect’s fee on building 27,040
(h) Cost of real estate purchased as a plant site (land $206,800 and building $55,900) 262,700
(i) Commission fee paid to real estate agency 9,620
(j) Installation of fences around property 4,030
(k) Cost of razing and removing building 10,130
(l) Proceeds from salvage of demolished building (4,910 )
(m) Interest paid during construction on money borrowed for construction 13,700
(n) Cost of parking lots and driveways 17,690
(o) Cost of trees and shrubbery planted (permanent in nature) 14,080
(p) Excavation costs for new building 2,950


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.)

Item Land Land
Improvements
Building Other Accounts

Solutions

Expert Solution

a) Other Accounts – ($ 276500)Notes Payable

b) Buildings –                         $ 276500

c) Land – $ 11220

d) Land –                                $ 8340

e) Buildings – $ 12060

f) Buildings –                          $ (2010)

g) Building –                           $ 27040

h) Land –                                $ 262700

i) Land –                                 $ 9620

j) Land Improvement –           $ 4030

k) Land –                                $ 10130

l) Land –                                 $ (4910)

m) Buildings –                        $ 13700

n) Land Improvement –          $ 17690

o) Land –                                $ 14080

p) Buildings –                         $ 2950


Related Solutions

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 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 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...
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...
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...
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...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT