Solved

A Company Made the Following Expenditures in Connection with the Construction

Question 147

Essay

A company made the following expenditures in connection with the construction of its
new building:
 Architect’s fees for the new building $12,000 Cash paid for land and run-down building on the land 300,000 Removal of old building 18,000 Salvage from sale of old building materials 4,000 Construction survey to site the new building 1,500 Legal fees for title search 3,000 Excavation for basement construction 25,000 Machinery purchased for operations 100,000 Storage charges on machinery because building was  not ready when machinery was delivered 900 Freight on machinery purchased 1,600 Hauling charges to delivery machinery from  Storage to new building 300 Construction costs of new building 1,000,000 Landscaping 20,000 Installation of machinery 2,500\begin{array}{|l|r|}\hline\text { Architect's fees for the new building } & \$ 12,000 \\\hline \text { Cash paid for land and run-down building on the land } & 300,000 \\\hline \text { Removal of old building } & 18,000 \\\hline \text { Salvage from sale of old building materials } & 4,000 \\\hline \text { Construction survey to site the new building } & 1,500 \\\hline \text { Legal fees for title search } & 3,000 \\\hline \text { Excavation for basement construction } & 25,000 \\\hline \text { Machinery purchased for operations } & 100,000 \\\hline\begin{array}{l}\text { Storage charges on machinery because building was } \\\text { not ready when machinery was delivered }\end{array} & 900 \\\hline \text { Freight on machinery purchased } & 1,600 \\\hline \begin{array}{l}\text { Hauling charges to delivery machinery from } \\\text { Storage to new building }\end{array} & 300 \\\hline \text { Construction costs of new building } & 1,000,000 \\\hline \text { Landscaping } & 20,000 \\\hline \text { Installation of machinery } & 2,500\\\hline\end{array}

Prepare a schedule showing the amounts to be recorded as Land,Buildings and Machinery.

Correct Answer:

verifed

Verified

*Assigned ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents