Q1. You are a new staff auditor assigned to audit Cray Company's Buildings account. You determine...

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Q1. You are a new staff auditor assigned to audit Cray Company's Buildings account. You determine that Cray Company made the following entries in its Buildings account in 2009. Debita 2009 Jan. Cost of land and old buildngs purchaned 5720.000 2 Legal fees incident to purchase 9.600 Fee for stie searah 1.200 2 Cost of demolahing ole buidings on land 19.200 12 June Cont of insurance during constucdion of new bulding 400 16 July 30 Payment to contractor on completion of new bulding 1,080.000 Aug Aechitects fees for desgn of new buldng 48.000 City assesament for sewers and sideaks considered permanent) Sept. 16.800 15 Oct. Cost of landscaping toansidered permanent 00 Nov. 1 Cost of driveways and parking lots 60.000 Credits Jan. Proceeds received upon sale of savaged materials from 15 old buldings 4800 In addition to the entries in the account, you obtained the following information in your interview with the accountant in charge of the Buildings account The company began using the new building on 2009 September 1. The building is estimated to have a 40-year usetul ide and no salvage value. The company began using the driveways and parking lots on 2009 November 1. The driveways and parking lots have an estimated 10-year useful ife and no salvage value. The company uses the straight-line depreciation method to depreciate all f its plant assets. Using all of this information, do the following 1. Prepare a schedule that shows the separate cost of land, buildings, and land improvements. 2 Compute the amount of depreciation expense for 2009. You should calculate depreciation based on exact time for which those assets were used in 2009. Q1. You are a new staff auditor assigned to audit Cray Company's Buildings account. You determine that Cray Company made the following entries in its Buildings account in 2009. Debita 2009 Jan. Cost of land and old buildngs purchaned 5720.000 2 Legal fees incident to purchase 9.600 Fee for stie searah 1.200 2 Cost of demolahing ole buidings on land 19.200 12 June Cont of insurance during constucdion of new bulding 400 16 July 30 Payment to contractor on completion of new bulding 1,080.000 Aug Aechitects fees for desgn of new buldng 48.000 City assesament for sewers and sideaks considered permanent) Sept. 16.800 15 Oct. Cost of landscaping toansidered permanent 00 Nov. 1 Cost of driveways and parking lots 60.000 Credits Jan. Proceeds received upon sale of savaged materials from 15 old buldings 4800 In addition to the entries in the account, you obtained the following information in your interview with the accountant in charge of the Buildings account The company began using the new building on 2009 September 1. The building is estimated to have a 40-year usetul ide and no salvage value. The company began using the driveways and parking lots on 2009 November 1. The driveways and parking lots have an estimated 10-year useful ife and no salvage value. The company uses the straight-line depreciation method to depreciate all f its plant assets. Using all of this information, do the following 1. Prepare a schedule that shows the separate cost of land, buildings, and land improvements. 2 Compute the amount of depreciation expense for 2009. You should calculate depreciation based on exact time for which those assets were used in 2009.

Answer rating: 100% (QA)

Answer Schedule of Cost of Land Date particulars Amount 2Jan Cost of Land and old building 720000 2J... View the full answer