Sarasota 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 $1,118 Architect’s fees 6,816 Cash paid for land and dilapidated building thereon 187,050 Removal of old building $43,000 Less: Salvage 11,825 31,175 Interest on short-term loans during construction 15,910 Excavation before construction for basement 40,850 Machinery purchased (subject to 2% cash discount, which was not taken) 118,250 Freight on machinery purchased 2,881 Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 4,687 New building constructed (building construction took 6 months from date of purchase of land and old building) 1,042,750 Assessment by city for drainage project 3,440 Hauling charges for delivery of machinery from storage to new building 1,333 Installation of machinery 4,300 Trees, shrubs, and other landscaping after completion of building (permanent in nature) 11,610 Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.) Land Buildings Machinery and Equipment Other Abstract fees $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount Architect’s fees enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Cash paid for land and old building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Removal of old building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Interest on loans during construction enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Excavation before construction enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Machinery purchased enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Freight on machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Storage charges caused by noncompletion of building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount New building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Assessment by city enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Hauling charges - machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Installation - machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Landscaping enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount $enter a total amount $enter a total amount $enter a total amount $enter a total amount
Sarasota 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 $1,118 Architect’s fees 6,816 Cash paid for land and dilapidated building thereon 187,050 Removal of old building $43,000 Less: Salvage 11,825 31,175 Interest on short-term loans during construction 15,910 Excavation before construction for basement 40,850 Machinery purchased (subject to 2% cash discount, which was not taken) 118,250 Freight on machinery purchased 2,881 Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 4,687 New building constructed (building construction took 6 months from date of purchase of land and old building) 1,042,750 Assessment by city for drainage project 3,440 Hauling charges for delivery of machinery from storage to new building 1,333 Installation of machinery 4,300 Trees, shrubs, and other landscaping after completion of building (permanent in nature) 11,610 Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.) Land Buildings Machinery and Equipment Other Abstract fees $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount Architect’s fees enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Cash paid for land and old building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Removal of old building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Interest on loans during construction enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Excavation before construction enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Machinery purchased enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Freight on machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Storage charges caused by noncompletion of building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount New building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Assessment by city enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Hauling charges - machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Installation - machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Landscaping enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount $enter a total amount $enter a total amount $enter a total amount $enter a total amount
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 2EB: Johnson, Incorporated had the following transactions during the year: Purchased a building for...
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Question
Sarasota Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment.
Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)
Abstract company’s fee for title search | $1,118 | |||
Architect’s fees | 6,816 | |||
Cash paid for land and dilapidated building thereon | 187,050 | |||
Removal of old building |
$43,000
|
|||
Less: Salvage |
11,825
|
31,175 | ||
Interest on short-term loans during construction | 15,910 | |||
Excavation before construction for basement | 40,850 | |||
Machinery purchased (subject to 2% cash discount, which was not taken) | 118,250 | |||
Freight on machinery purchased | 2,881 | |||
Storage charges on machinery, necessitated by noncompletion of | ||||
building when machinery was delivered | 4,687 | |||
New building constructed (building construction took 6 months from | ||||
date of purchase of land and old building) | 1,042,750 | |||
Assessment by city for drainage project | 3,440 | |||
Hauling charges for delivery of machinery from storage to new building | 1,333 | |||
Installation of machinery | 4,300 | |||
Trees, shrubs, and other landscaping after completion of building | ||||
(permanent in nature) | 11,610 |
Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)
Land
|
Buildings
|
Machinery and Equipment
|
Other
|
|||||
---|---|---|---|---|---|---|---|---|
Abstract fees
|
$enter a dollar amount
|
$enter a dollar amount
|
$enter a dollar amount
|
$enter a dollar amount
|
||||
Architect’s fees
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
Cash paid for land and old building
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
Removal of old building
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
Interest on loans during construction
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
Excavation before construction
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
Machinery purchased
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
Freight on machinery
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
Storage charges caused by noncompletion of building
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
New building
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
Assessment by city
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
Hauling charges - machinery
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
Installation - machinery
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
Landscaping
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
||||
$enter a total amount
|
$enter a total amount
|
$enter a total amount
|
$enter a total amount
|
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