Problem 1The following payments and receipts are related to Land, Land Improvements, and Buildings:Finder’s fee paid to real estate agency $ 4,000Cost of real estate acquired as Plant site $400,000Fee paid to attorney for title search $ 2,500Delinquent real estate taxes, assumed by purchaser $ 31,750Architects and engineers fees for plans $36,000Cost of removing building on land purchased $ 10,000Proceeds from sale of materials from demolished building $ 3,000Cost of filling and grading land $ 15,200Insurance premium during building construction $ 5,400Money borrowed to pay building contractor $600,000Cost of extending water main to property $ 9,000Cost of constructing sidewalks and curbs $ 13,200Cost of repairing vandalism damage during construction $ 3,000Cost of trees and shrubs planted $ 12,000Cost of paving parking lot $ 14,500Interest on loan for building construction $ 33,000Property taxes on building due one year after completion $ 5,000Cost of lights for parking lot $ 12,000Cost of insuring building for one year after completion $ 7,500Gardening and mowing fees $ 4,000Using the information above, assign each amount to Land, Land Improvements, Building or Other Accounts. Land Land Improvements Building Other AccountsProblem 2ABC Company purchases a machine on January 1, 2012 for $45,000 with an estimated residual value of $3,000 and useful life of seven years. Use the straight-line method.Prepare the journal entry to record depreciation for 2014.If possible, compute the net book value at the end of 2014.If the machine is sold for $24,000 at the end of 2014, prepare the journal entry to record the disposal. Problem 3DEF Company purchases a vehicle on January 1, 2013 for $60,000 with an estimated residual value of $6,000 and useful life of 90,000 miles. Use the units-of-activity method.Prepare the journal entry to record depreciation for 2015 if the truck is driven 10,000 miles in that year.If possible, compute the net book value at the end of 2015.If possible, compute the net book value at the end of 2015 if the vehicle was driven 20,000 and 30,000 miles in 2013 and 2014, respectively. Problem 4XYZ Company purchases a machine On January 1, 2014 for $100,000 with an estimated residual value of $10,000 and useful life of four years. Use the double-declining balance method.Prepare the journal entry to record depreciation for 2016.If possible, compute the carrying value at the end of 2016.Determine the amount of depreciation expense in 2017. Problem 5LMN Company purchased another company on January 1, 2015, resulting in the recording of goodwill of $2,000,000 and a patent valued at $120,000. The patent has a remaining life of 10 years. At December 31, 2015, it was determined that an impairment in the value of the goodwill of $500,000 had occurred.Prepare any necessary journal entries affecting the goodwill and patent accounts at December 31, 2015.

Problem 1 The following payments and receipts are related to Land, Land Improvements, and Buildings: Finder’s fee paid to real estate agency $ 4,000 Cost of real estate acquired as Plant site $400,000 Fee paid to attorney for title search $ 2,500 Delinquent real estate taxes, assumed by purchaser $ 31,750 Architects and engineers fees for plans $36,000 Cost of removing building on land purchased $ 10,000 Proceeds from sale of materials from demolished building $ 3,000 Cost of filling and grading land $ 15,200 Insurance premium during building construction $ 5,400 Money borrowed to pay building contractor $600,000 Cost of extending water main to property $ 9,000 Cost of constructing sidewalks and curbs $ 13,200 Cost of repairing vandalism damage during construction $ 3,000 Cost of trees and shrubs planted $ 12,000 Cost of paving parking lot $ 14,500 Interest on loan for building construction $ 33,000 Property taxes on building due one year after completion $ 5,000 Cost of lights for parking lot $ 12,000 Cost of insuring building for one year after completion $ 7,500 Gardening and mowing fees $ 4,000 Using the information above, assign each amount to Land, Land Improvements, Building or Other Accounts. Land Land Improvements Building Other Accounts

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.1.3P

See similar textbooks

Related questions

Question

Problem 1

The following payments and receipts are related to Land, Land Improvements, and Buildings:

Finder’s fee paid to real estate agency $ 4,000
Cost of real estate acquired as Plant site $400,000
Fee paid to attorney for title search $ 2,500
Delinquent real estate taxes, assumed by purchaser $ 31,750
Architects and engineers fees for plans $36,000
Cost of removing building on land purchased $ 10,000
Proceeds from sale of materials from demolished building $ 3,000
Cost of filling and grading land $ 15,200
Insurance premium during building construction $ 5,400
Money borrowed to pay building contractor $600,000
Cost of extending water main to property $ 9,000
Cost of constructing sidewalks and curbs $ 13,200
Cost of repairing vandalism damage during construction $ 3,000
Cost of trees and shrubs planted $ 12,000
Cost of paving parking lot $ 14,500
Interest on loan for building construction $ 33,000
Property taxes on building due one year after completion $ 5,000
Cost of lights for parking lot $ 12,000
Cost of insuring building for one year after completion $ 7,500
Gardening and mowing fees $ 4,000

Using the information above, assign each amount to Land, Land Improvements, Building or Other Accounts.

Land

Land Improvements

Building

Other Accounts

Problem 2

ABC Company purchases a machine on January 1, 2012 for $45,000 with an estimated residual value of $3,000 and useful life of seven years. Use the straight-line method.

Prepare the journal entry to record depreciation for 2014.
If possible, compute the net book value at the end of 2014.
If the machine is sold for $24,000 at the end of 2014, prepare the journal entry to record the disposal.

Problem 3

DEF Company purchases a vehicle on January 1, 2013 for $60,000 with an estimated residual value of $6,000 and useful life of 90,000 miles. Use the units-of-activity method.

Prepare the journal entry to record depreciation for 2015 if the truck is driven 10,000 miles in that year.
If possible, compute the net book value at the end of 2015.
If possible, compute the net book value at the end of 2015 if the vehicle was driven 20,000 and 30,000 miles in 2013 and 2014, respectively.

Problem 4

XYZ Company purchases a machine On January 1, 2014 for $100,000 with an estimated residual value of $10,000 and useful life of four years. Use the double-declining balance method.

Prepare the journal entry to record depreciation for 2016.
If possible, compute the carrying value at the end of 2016.
Determine the amount of depreciation expense in 2017.

Problem 5

LMN Company purchased another company on January 1, 2015, resulting in the recording of goodwill of $2,000,000 and a patent valued at $120,000. The patent has a remaining life of 10 years. At December 31, 2015, it was determined that an impairment in the value of the goodwill of $500,000 had occurred.

Prepare any necessary journal entries affecting the goodwill and patent accounts at December 31, 2015.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.