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 sale of salvage materials from old building | 4,000 | * | |
| f. | Special assessment paid to city for extension of water main to the property | 29,000 | ||
| g. | Architect’s and engineer’s fees for plans and supervision | 60,000 | ||
| h. | Premium on one-year insurance policy during construction | 6,000 | ||
| i. | Cost of filling and grading land | 12,000 | ||
| j. | Money borrowed to pay building contractor | 900,000 | * | |
| k. | Cost of repairing windstorm damage during construction | 5,500 | ||
| l. | Cost of paving parking lot to be used by customers | 32,000 | ||
| m. | Cost of trees and shrubbery planted | 11,000 | ||
| n. | Cost of floodlights installed on parking lot | 2,000 | ||
| o. | Cost of repairing vandalism damage during construction | 2,500 | ||
| p. | Proceeds from insurance company for windstorm and vandalism damage | 7,500 | * | |
| q. | Payment to building contractor for new building | 800,000 | ||
| r. | Interest incurred on building loan during construction | 34,500 | ||
| s. | Refund of premium on insurance policy (h) canceled after 11 months | 500 | * |
Required:
1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign.
| Item | Account | Amount |
| a. | $ | |
| b. | $ | |
| c. | $ | |
| d. | $ | |
| e. | $ | |
| f. | $ | |
| g. | $ | |
| h. | $ | |
| i. | $ | |
| j. | $ | |
| k. | $ | |
| l. | $ | |
| m. | $ | |
| n. | $ | |
| o. | $ | |
| p. | $ | |
| q. | $ | |
| r. | $ | |
| s. | $ |
2. Determine the amount debited to Land, Land Improvements, and Building.
| Land | Land Improvements | Building |
| $ | $ | $ |
3. Land used as a plant site lose its ability to provide services; thus, it depreciated. However, land improvements lose their ability to provide services as time passes and are, therefore, .
4. What would be the effect on the income statement and balance sheet if the cost of filling and grading land of $12,000 [payment (i)] was incorrectly classified as Land Improvements rather than Land? Assume Land Improvements are depreciated over a 20-year life using the double-declining-balance method.
In: Accounting
In: Accounting
Which of the following is a PUBLIC good?
A. hotel
B. congested non-toll road
C. herd immunity
D. shared popcorn
In: Economics
As an executive housekeeper of a three (3) star hotel, explain
in details with 'examples' five (5)
constraints on accommodation management in the housekeeping
department.
In: Operations Management
Apply the concept of the product life cycle to a hotel. How does a company keep its products from going into the decline stage?
In: Accounting
What are the consequences to a hotel operator of a customer such as Thomas Cook collapsing into liquidation? How does it affect resigning contracts with new owners?
In: Accounting
This project is of Java OOP.
Comprehensive UML Diagram of Managing customers for Hotel
Management project Mwith complete labelling of attributes,
subclasses.
In: Computer Science
MeadowMeadow Construction, Inc. is a home builder in Arizona. MeadowMeadow uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs. For the year, it estimated construction overhead of $1,350,000 and total direct labor cost of $3,375,000. The following events occurred during AugustAugust:
.Requirement 1. Calculate MeadowMeadow's predetermined overhead allocation rate for the year.
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Predetermined overhead |
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= |
allocation rate |
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= |
% |
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Requirement 2. Prepare journal entries to record the events in the general journal. (Record debits first, then credits. Exclude explanations from any journal entries.)
a. Purchased materials on account, $420,000.
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Date |
Accounts |
Debit |
Credit |
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a. |
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b. Requisitioned direct materials and used direct labor in construction. Record the materials requisitioned.
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Date |
Accounts |
Debit |
Credit |
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b. |
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c. The company incurred total wages of $260,000.
Use the data from Item b to assign the wages. (Assume the wages have not been paid.)
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Date |
Accounts |
Debit |
Credit |
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c. |
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d. Depreciation of construction equipment, $ 6 comma 200$6,200
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Date |
Accounts |
Debit |
Credit |
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d. |
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e. Other overhead costs incurred: Equipment rentals paid in cash, $35,000;
Worker liability insurance expired, $4,000.
(Prepare a single journal entry for this event.)
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Date |
Accounts |
Debit |
Credit |
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e. |
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f. Allocated overhead to jobs.
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Date |
Accounts |
Debit |
Credit |
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f. |
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g. Houses completed: 402, 404
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Date |
Accounts |
Debit |
Credit |
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g. |
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h. House sold on account: 404 $260,000 Begin by recording the revenue from the sale on account. Do not record the expense related to the sale in this journal entry. We will do that in the next step.
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Date |
Accounts |
Debit |
Credit |
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h. |
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Now record the cost of goods sold from the sale of house 404.
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Date |
Accounts |
Debit |
Credit |
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h. |
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Requirement 3. T-accounts for Work-in-Process Inventory and Finished Goods Inventory have been opened for you. Post the appropriate entries to these accounts, identifying each entry by letter. Determine the ending account balances, assuming that the beginning balances were zero.
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Work-in-Process Inventory |
Finished Goods Inventory |
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Requirement 4. Add the costs of the unfinished houses, and show that this total amount equals the ending balance in the Work-in-Process Inventory account.
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Meadow Construction, Inc. |
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Reconciliation of Work-in-Process Inventory Subsidiary |
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and Control Accounts |
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Total WIP Balance |
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Unfinished houses: |
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Direct Materials |
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Direct Labor |
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Construction Overhead |
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Total cost equals Ending WIP Inventory |
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MORE INFO
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a. |
Purchased materials on account, $420,000 |
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b. |
Requisitioned direct materials and used direct labor in construction. Recorded the materials requisitioned. |
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c. |
The company incurred total wages of $260,000. Use the data from Item b to assign the wages. Wages are not yet paid. |
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d. |
Depreciation of construction equipment, $6,200 |
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e. |
Other overhead costs incurred: Equipment rentals paid in
cash,
$35,000; Worker liability insurance expired, $4,000. |
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f. |
Allocated overhead to jobs. |
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g. |
Houses completed: 402, 404 |
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h. |
House sold on account: 404 for $ 260,000 |
In: Accounting
Suppose that you are responsible for making arrangements for a business convention and that you have been charged with choosing a city for the convention that has the least expensive hotel rooms. you have narrowed your choices to Atlanta and Houston that are consistent with the results reported by Smith travel research. Because considerable historical data on the prices of the rooms in both cities are available the population standard deviations for the prices can be assumed to be $20 in Atlanta and $25 in Houston. Based on the sample data, can you conclude that the mean price of a hotel room in Atlanta is lower than the one in Houston.
In: Statistics and Probability
- Two hotels that are in different markets and do not compete with one another noted the following data during a recent year:
Hotel E-Z Sleep
o When the nightly rate was $135 per room, 700 rooms per
month were rented
o When the nightly rate was increased to $165 per room, 600
rooms per month were rented
Hotel Nice Night
o When the nightly rate was $200 per room, 800 rooms per
month were rented
o When the nightly rate was increased to $300 per room, 500
rooms per month were rented - Do the following for each hotel:
Calculate the price elasticity of demand using the midpoint method
Calculate total revenue before and after the price change
Determine whether demand is inelastic, elastic, or unitary elastic
Was increasing price the right thing to do?
What are some other factors that may have influenced the data?
Should the hotels consider increasing the price in the future?
In: Economics