EBK FINANCIAL ACCOUNTING
15th Edition
ISBN: 8220103648639
Author: Duchac
Publisher: YUZU
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Question
Chapter 10, Problem 1PB
1.
To determine
Identify each item by letter and the list the amounts in columnar form.
2.
To determine
Determine the amount debited to Land, Land Improvements, and Building.
3.
To determine
Explain the contradictory application of the concept of depreciation for Land and Land Improvements.
4.
To determine
Explain the effect on the current year’s income statement and balance sheet due to wrong classification of the cost of filling and grading land.
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Students have asked these similar questions
The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business
enterprise. The receipts are enclosed in parentheses.
a.
b.
C.
d.
e.
f.
g-
h.
i.
j.
k.
1.
m.
n.
O.
P.
Item
a.
b.
C.
d.
e.
f.
g
h.
i.
j.
Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be
reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title. (Enter receipt amounts
using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). If no entry is required in other accounts, select "No Entry" for
the account titles.)
k.
I.
m.
n.
0.
Money borrowed to pay building contractor (signed a note)
Payment for construction from note proceeds
p.
Cost of land fill and clearing
Delinquent real estate taxes on property assumed by purchaser
Premium on 6-month insurance policy during construction
Refund of 1-month insurance premium…
Land improvements include:
Oa. surveying fees.
Ob. sales tax.
Oc. freight.
С.
Od. outdoor lighting.
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 ....
b. Cost of real estate acquired as a plant site: Land....
$ 2,500
285,000
Building (to be demolished).
55,000
c. Delinquent real estate taxes on property, assumed by purchaser .
d. Cost of tearing down and removing building acquired in (b)
e. Proceeds from sale of salvage materials from old building
Special assessment paid to city for extension of water main to the property...
g. Architect's and engineer's fees for plans and supervision ...
h. Premium on one-year insurance policy during construction..
Cost of filling and grading land ......
j. Money borrowed to pay building contractor.
k. Cost of repairing windstorm damage during construction
Cost of paving parking lot to be used by customers
m. Cost of trees and shrubbery planted
n. Cost of floodlights…
Chapter 10 Solutions
EBK FINANCIAL ACCOUNTING
Ch. 10 - ONeil Office Supplies has a fleet of automobiles...Ch. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Keyser Company purchased a machine that has a...Ch. 10 - Is it necessary for a business to use the same...Ch. 10 - a. Under what conditions is the use of the...Ch. 10 - Prob. 7DQCh. 10 - Immediately after a used truck is acquired, a new...Ch. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - Equipment acquired at the beginning of the year at...Ch. 10 - A truck acquired at a cost of 69,000 has an...Ch. 10 - A tractor acquired at a cost of 420,000 has an...Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - Equipment with a cost of 180,000 has an estimated...Ch. 10 - A truck with a cost of 82,000 has an estimated...Ch. 10 - On February 14, Garcia Associates Co. paid 2,300...Ch. 10 - On August 7, Green River Inflatables Co. paid...Ch. 10 - Equipment was acquired at the beginning of the...Ch. 10 - Equipment was acquired at the beginning of the...Ch. 10 - Prob. 7PEACh. 10 - Prob. 7PEBCh. 10 - On December 31, it was estimated that goodwill of...Ch. 10 - On December 31, it was estimated that goodwill of...Ch. 10 - Prob. 9PEACh. 10 - Prob. 9PEBCh. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Tri-City Ironworks Co. reported 44,500,000 for...Ch. 10 - Convert each of the following estimates of useful...Ch. 10 - A refrigerator used by a wholesale warehouse has a...Ch. 10 - A diesel-powered tractor with a cost of 90,000 and...Ch. 10 - Prior to adjustment at the end of the year, the...Ch. 10 - A Kubota tractor acquired on January 8 at a cost...Ch. 10 - A storage tank acquired at the beginning of the...Ch. 10 - Equipment acquired at a cost of 105,000 has an...Ch. 10 - A building with a cost of 1,200,000 has an...Ch. 10 - US Freight Lines Co. incurred the following costs...Ch. 10 - Jackie Fox owns and operates Platinum Transport...Ch. 10 - Quality Move Company made the following...Ch. 10 - Willow Creek Company purchased and installed...Ch. 10 - Equipment acquired on January 8 at a cost of...Ch. 10 - Equipment acquired on January 6 at a cost of...Ch. 10 - Prob. 19ECh. 10 - Kleen Company acquired patent rights on January 10...Ch. 10 - Prob. 21ECh. 10 - List the errors you find in the following partial...Ch. 10 - Amazon.com, Inc. is the worlds leading Internet...Ch. 10 - Verizon Communications Inc. is a major...Ch. 10 - FedEx Corporation and United Parcel Service, Inc....Ch. 10 - The following table shows the sales and average...Ch. 10 - Prob. 27ECh. 10 - Prob. 28ECh. 10 - Prob. 29ECh. 10 - On October 1, Bentley Delivery Services acquired a...Ch. 10 - The following payments and receipts are related to...Ch. 10 - Dexter Industries purchased packaging equipment on...Ch. 10 - Perdue Company purchased equipment on April 1 for...Ch. 10 - New lithographic equipment, acquired at a cost of...Ch. 10 - The following transactions and adjusting entries...Ch. 10 - Prob. 6PACh. 10 - Prob. 1PBCh. 10 - Waylander Coatings Company purchased waterproofing...Ch. 10 - Layton Company purchased tool sharpening equipment...Ch. 10 - New tire retreading equipment, acquired at a cost...Ch. 10 - Prob. 5PBCh. 10 - Prob. 6PBCh. 10 - Prob. 1CPCh. 10 - Prob. 2CPCh. 10 - Godwin Co. owns three delivery trucks. Details for...Ch. 10 - The following is an excerpt from a conversation...
Knowledge Booster
Similar questions
- 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. Instructions 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicate receipts by an asterisk. Identify each item by letter and list the amounts in columnar form, as follows: 2. Determine the amount debited to Land, Land Improvements, and Building. 3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation. 4. What would be the effect on the current years 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 that Land Improvements are depreciated over a 20-year life using the double-declining-balance method.arrow_forwardAllocate payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. Instructions Determine the increases to Land, Lind Improvements. and Building.arrow_forwardWhich of the following accounts would be included in the property, plant, and equipment category of the classified balance sheet? Land held for investment Accumulated Depreciation Office Supplies Mortgage Payablearrow_forward
- Indicate in the blank spaces below, the section of the balance sheet where the following items are reported. Use the following code to identify your answer: PPE Property, Plant, and Equipment I Intangibles O Other N/A Not on the balance sheet _____ 1.Goodwill ______ 6. Research and Development Costs _____ 2.Land Improvements ______ 7. Land _____ 3.Buildings ______ 8. Franchises _____ 4.Accumulated Depreciation ______ 9. Licenses _____ 5.Trademarks ______ 10. Equipmentarrow_forwardWhich of the following accounts would be included in the property, plant, and equipment category of the classified balance sheet? a. Land held for investment b. Accumulated Depreciation c. Office Supplies d. Mortgage Payablearrow_forward-determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building -would the company recognize a gain on the purchase? -record the purchase in a horizontal statements model -record the purchase in general journal formatarrow_forward
- What accounting treatment is normally given to the following items in accounting for plant assets? a. Additions. b. Major repairs. c. Improvements and replacements.arrow_forwardwhat is Land classified as on the Income statement in the Revenue section?arrow_forwardWhere is the amount of withholding on real property transactions reported on the Form 540? Select one: a. It's not; It's accounted for with a separate filing requirement with the CDTFA. b. As a credit to carry into the payments section of the Form 540 from line(s) 43-45. c. As income withholding on Line 71 d. As a payment for withholding on Line 73.arrow_forward
- Which of the following costs are reported on a company’s income statement and balance sheet? Select one: a. Cost of goods sold; Accumulated depreciation b. Gain on sale of land; Cost of goods sold c. Goodwill; Accounts payable d. Accumulated deprecation; Landarrow_forwardTwo intangible assets that might be reported in the Statement of Financial Position are: O a. Trademarks and tradenames O b. Prepaid rent and Patents O c. Copyrights and Supplies O d. Inventories and trademarks pe here to search 近arrow_forwardWhich of the following accounts would be classified as a current asset? Group of answer choices land machinery accounts receivable equipmentarrow_forward
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