On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for lånd, Building 1, Building 2, and LandImprovements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $796,500,with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $295,000 and is expected tolast another 10 years with no salvage value. The land is valued at $1,858,500. The company also incurs the followingadditional costs.Cost to demolish Building 1Cost of additional land grading iCost to construct Building 3, having a useful life of 25 years and a $398,000 salvage valueCost of new Land Improvements 2, having a 20-year useful life and no salvage value2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1.View transaction listJournal entry worksheet1Record the cost of the plant assets, paid in cash.Note: Enter debits before credits.DateJanuary 01Record entryGeneral JournalClear entryDebitCreditView general journalPrav16 17of 18$ 340,400193,4002,202,000173,000Next >

The lump sum amount paid to acquire various assets is allocated to different assets on the basis of…

On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for lånd, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $796,500, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $295,000 and is expected to last another 10 years with no salvage value. The land is valued at $1,858,500. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value repare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. $ 340,400 193,400 2,282,000 173,000

On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for lånd, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $796,500, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $295,000 and is expected to last another 10 years with no salvage value. The land is valued at $1,858,500. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value repare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. $ 340,400 193,400 2,282,000 173,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 15PB: Urquhart Global purchases a building to house its administrative offices for $500,000. The best...

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