In early January, Swanton Corp. purchased a building to house its manufacturing operations in Moose Jaw for $470,000. The company agreed to lease the land that the building stood on for $14,000 per year from the industrial park owner, and the municipality donated $140,000 to Swanton as an incentive to locate in the area and acquire the building. Prepare entries to record the cash that was exchanged in each of the transactions, assuming the cost reduction method is used.
Answer to relevant QuestionsUse the information for Swanton Corp. in BE10- 13. Prepare the entries to record the three cash transactions, assuming the deferral method is used. In exercise In early January, Swanton Corp. purchased a building to house ...Identify whether the following costs should be treated as a capital expenditure or a revenue expenditure when they are incurred. (a) $13,000 paid to rearrange and reinstall machinery (b) $200 paid for a rune-up and oil ...Northern Utilities Corporation incurred the following costs in constructing a new maintenance building during the fiscal period. (a) Direct labour costs incurred up to the point when the building is in a condition necessary ...11 Jackson Corporation operates a retail computer store. To improve its delivery services to customers, the company purchased four new trucks on April 1, 2014. The terms of acquisition for each truck were as follows: 1. ...Lightstone Equipment Ltd. wanted to expand into New Brunswick and was impressed by the provincial government's grant program for new industry. After being sure that it would qualify for the grant program, it purchased ...
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