Benton Travel Agency purchased land for $90,000 cash on December 10, 2022. At December 31, 2022, the land’s value has increased to $92,000. What amount should be reported for land on Benton’s balance sheet on December 31, 2022? Explain.
Q: Title In early January, Swanton Corp. purchased a building to house its manufacturing operations in…
A: In the cost reduction method, the cost of purchased assets gets reduced if cash is received against…
Q: Indicate for each transaction the account(s) and amount(s) that should be debited and credited.…
A:
Q: A parcel of land is offered for sale at $600,000, is recognized by its purchasers as easily being…
A: Accounting principles are those rules and guidelines which needs to be followed by accountants all…
Q: On January 1, 20x1, POLICE POWER Co. received cash of P8,000,000 from a local government to be used…
A: Grant is assistance or an incentive in return for compliance of certain conditions if any. Grant…
Q: During 2020 the following occurred. 1. A tract of land was purchased for $9,000 (cash) 2. A short…
A:
Q: a. A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale…
A: aConclusion:Asset- cash increases by $298,000.Land decreases by $115,000Owner's equity increases by…
Q: The following expenditures were incurred by the Keng, Inc. in 2019: Cost of land P4,500,000…
A: The question is based on the concept of Accounting Standard on PPE.
Q: A business purchases an acre of land for $5,000. The current market value is $5,550, and the land…
A: Accounting Principles: The term "accounting principles" refers to the standards, guidelines or…
Q: Land with an assessed value of $750,000 for property tax purposes is acquired by a business for…
A: The cost principle is one of the accounting principles. It generally means that all required assets,…
Q: During the current year, XYZ Corporation purchased land for $5,000 and sold a piece of factory…
A: Workings: Net cash flows = cash Inflow - cash outflow.
Q: At what value should the land be recorded in McCade Repair Service's records?
A: McCade Repair Service accepted the counter offer for $72,000 and purchased the land. This is the…
Q: On July 1, 2022, BTS Company purchased a machinery from a dealer paying P2,310,000 cash. In…
A: Purchase cost = P2,310,000 Transportation cost = P150,000
Q: A company purchased a computer system on January 1, 2021 for $ 1,600,00 and sold it one year later…
A: Formula: Straight line method depreciation expense = ( Asset cost - Salvage value ) / Useful life…
Q: Carey Company buys land for $50,000 on 12/31/13. As of 3/31/14, the land has appreciated in value to…
A: Land is the fixed assets which is used for many year to comes , in business. Since value of land…
Q: Sandhill Co. purchases land for $130000 cash. Sandhill assumes $5600 in property taxes due on the…
A: Amount to be recorded = Purchase Price of land + Taxes + Legal Costs + Grading Costs
Q: a. Make all necessary journal for 2018 b. Make all necessary journal for 2019 and 2020 c. Determine…
A: As per Ind As 16 and IAS 16 Property plant and equipment - After recognizing an asset, PPE whose…
Q: a. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for…
A: (a)The value of land should not be changed in the business records. The value of land after 10 years…
Q: On January 1, 2018, Prairie Enterprises purchased a parcel of land for $14,000 cash. At the time of…
A: 1 1.1 Show the effect for sale of land at $15,540 on accounting equation as shown below: 1.2…
Q: Technologies Worldwide purchased land for $850,000 in 2020 with the intent to expand operations. In…
A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…
Q: Cypress Corp. went into business on October 1, 2020. Following are some of Ranier's transactions…
A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets =(12000 - 0) / 4…
Q: On January 19, Ivanova Inc. buys a land that includes a building and a variety of land improvements…
A: Appraised value Percent of the total appraised value x Total cost of aquisition =Approtioned…
Q: On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which…
A: Particulars Current Appraised Value Land P2,200,000 Warehouse P3,300,000 Total…
Q: 2.Suppose that you acquired a commercial building (a drilling gear box plant) and put in service in…
A: Cost of Property = $ 2,000,000 Value of land ( in above) = $500000 CCA rate for commercial building…
Q: Land and a hotel building were acquired for $14,500,000. The owner paid $7,000,000 in cash and…
A: The journal entry for purchasing the assets is recorded by debiting the assets account and crediting…
Q: Carey Company buys land for $50,000 on 31/12/2016. As of 31/3/2017, in value to $50,700. On…
A: Land is a fixed asset. Fixed assets are the assets whose benefits can be obtained for a long period…
Q: At the beginning of the current year, EZE Company reported land P3,200,000 and building P7,500,000.…
A: Explanation: The total cost of the building include the following: Beginning Balance of the Building…
Q: On January 1O, GNS Repair Service extended an offer of P6,000,000 for land located at De Venecia…
A: Cost Concept: Under Cost concept, that is part of GAAP, assets should always be recorded at their…
Q: Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an…
A: Formula: Assets=Liabilities+Equity
Q: Assuming Cash transactions and straightline depreciation,prepare journal entry to record purchase of…
A: Land and building combined cost has to be divided because land is non depreciable assets where as…
Q: mpany purchased a property for 100,000. The property included a building, a parking lot, and land.…
A: Property, plant, and equipment consists of land, buildings, leasehold improvements, and equipment,…
Q: Sadaf Oman Company purchased a land for RO 250,000 in 2010. In October 2020, the company Mold this…
A: Equity refers to the total value which is expected to return to a company's shareholders when all of…
Q: On June 25, McCade Repair Service extended an offer of $109,000 for land that had been priced for…
A: Historical cost refers to the original cost of the item or fixed asset
Q: Tristar Production Company began operations on September 1, 2021. Listed below are a number of…
A: Land and Building value as per percentage of fair value : Asset Fair value % of FV ( % * 160000 )…
Q: Read each problem carefully and choose the CORRECT answer among the choices. PROBLEM: At the start…
A: Opening balance of land = P2,200,000 land purchased = P1,600,000 Real estate agent charges =…
Q: On January 1, 2019, Alberta Company purchased land and a building for $1,120,000. At the time of the…
A: Journal entry for purchase includes a debit to the asset bought and a credit to cash (if paid in…
Q: More info Additionally, One Stop purchased land of $27,700 by financing it 100% with long-term notes…
A: Statement of Cash Flow - Statement of Cash Flow shows the movement of Cash during the financial…
Q: a. Identify the following transactions as either Capital Expenditure or Revenue Expenditure. i). Pay…
A: Introduction: Capital expenditure: Amount spent for purchase of long term assets called as capital…
Q: A company purchased a computer system on January 1, 2021 for S 1,600,00 and sold it one year later…
A: journal entry to record depreciation are as follows
Q: Makati Inc. acquires a building on February 1, 2020 at a cost of 5,500,000. The building has an…
A: Formula: Straight line method depreciation = ( Cost of Asset - salvage value ) / useful life years
Q: Use the following information for the next two (2) questions: On April 1, 2022, Pacific Corporation…
A: Purchase price is allocated among the various acquired assets based on their fair market values. If…
Q: At the beginning of the current year, EZE Company reported land P3,200,000 and building P7,500,000.…
A: Property, plant and equipment is the non current assets that is reported in the balance sheet of the…
Q: Assets Acquired by Exchange Bremer Company made the following exchanges of assets during 2019: 1.…
A: Journal entry is the primary reporting of transactions in the account books.
Q: On December 30, 2021, CHERRY Company paid $2,000,000 for land. On December 31, 2021, the current…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: On February 3, Gallatin Repair Service extended an offer of $152,000 for land that had been priced…
A: Introduction: The land is the fixed asset for the company which does not attach any amount of…
Q: PROBLEMS Simple Company reported the following information i The entity purchased land on January 1,…
A: Profit and gain is that profit is the total earnings for a period whereas gain is an economic…
- Benton Travel Agency purchased land for $90,000 cash on December 10, 2022. At December 31, 2022, the land’s value has increased to $92,000. What amount should be reported for land on Benton’s
balance sheet on December 31, 2022? Explain.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A. A landscaper received a customers order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year. B. A company divides its income statements into four quarters for the year. C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000. D. Brandys Flower Shop is forecasting its balance sheet for the next five years. E. When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns. F. A company records the expenses incurred to generate the revenues reported.
- On January 1, 2018, Prairie Enterprises purchased a parcel of land for $14,000 cash. At the time of purchase, the company planned to use the land for a warehouse site. In 2020, Prairie Enterprises changed its plans and sold the land. Required Assume that the land was sold for $15,540 in 2020. (1) Show the effect of the sale on the accounting equation. (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land? Assume that the land was sold for $13,160 in 2020. (1) Show the effect of the sale on the accounting equation. (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land?Tristar Production Company began operations on September 1, 2024. Listed below are a number of transactions that occurred during its first four months of operations. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $200,000 in cash for the property. According to appraisals, the land had a fair value of $134,200 and the building had a fair value of $85,800. On September 1, Tristar signed a $50,000 noninterest-bearing note to purchase equipment. The $50,000 payment is due on September 1, 2025. Assume that 8% is a reasonable interest rate. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,500. On September 18, the company paid its lawyer $8,000 for organizing the corporation. On October 10, Tristar purchased equipment for cash. The purchase price was $25,000 and $1,000 in freight charges also were paid. On December 2, Tristar acquired equipment. The company was short of cash…A company purchases land for $30,000 on December 1, 2017. On December 31, 2021, the land has an estimated value of $45,000. The company had received a written offer for the land of $43,000 on November 15, 2021. What amount should the land be recorded at on the financial statements on December 31, 2021?
- Sadaf Oman Company purchased a land for RO 250,000 in 2010. In October 2020, the company Mold this land for RO 1000,000. In addition, the company purchased a bulding for RO SO000 in July 2019. The land and building were reported on the December 31, 2019 statement of financial position atOn January 1, 2020, Sunland Company purchased land for an office site by paying $2680000 cash. Sunland began construction on the office building on January 1. The following expenditures were incurred for construction: Date Expenditures January 1, 2020 $ 1780000 April 1, 2020 2530000 May 1, 2020 4490000 June 1, 2020 4720000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3650000 was borrowed on January 1, 2020 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2020 was a $1400000, 12%, 6-year note payable dated January 1, 2020. Assume the weighted-average accumulated expenditures for the construction project are $4300000. The amount of interest cost to be capitalized during 2020 is $441750. $387000. $496500. $406500...Carey Company buys land for $50,000 on 12/31/13. As of 3/31/14, the land has appreciated in value to $50,700. On 12/31/14, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2014?
- Technologies Worldwide purchased land for $850,000 in 2020 with the intent to expand operations. In 2021, the company decides the land is no longer needed, and the land is sold for $900,000. Determine the investing cash flows to be reported in 2021. Determine the investing cash flows to be reported in 2021 if the land was purchased in 2020 for $950,000?At December 31, 2019, certain accounts included in the property, plant, and equipment section of Oriole Company’s balance sheet had the following balances. Land $236,300 Buildings 895,000 Leasehold improvements 666,400 Equipment 882,500 During 2020, the following transactions occurred. 1. Land site number 621 was acquired for $859,000. In addition, to acquire the land Oriole paid a $60,700 commission to a real estate agent. Costs of $40,700 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $20,500. 2. A second tract of land (site number 622) with a building was acquired for $420,400. The closing statement indicated that the land value was $301,400 and the building value was $119,000. Shortly after acquisition, the building was demolished at a cost of $41,000. A new building was constructed for $331,100 plus the following costs. Excavation fees $38,300 Architectural design…During 2020 the following occurred.1. A tract of land was purchased for $9,000 (cash)2. A short term loan in the amount of $15,000 were retired (paid off).3. The owner invested an additional $10,000 in Capital.4. The Owner withdrew cash totaling $9,375 for personal expenses.5. Net Income was $35,250 after charging depreciation of $13,5006. AGT Inc., purchased land for $22,500 by taking an additionallong term loan.7. AGT Inc. sold part of its long term investments for $12,875. Thistransaction resulted in a gain of $2,000 for the company. This gainwas included in the reported net Income.8. At the end of 2020, both Other Current Assets (other than cash) andOther Current Liabilities remained at the same amount.9. At the end of 2020, AGT Inc. has a cash balance of $44,750 Required1. Prepare The Statement of Financial Position for 2020 for AGT Inc. inproper format(vertical)
