Question

The Italian Pizza Company purchased land as a factory site for $ 90,000. Prior to construction of the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below:
Land clearing costs .............. $ 5,000
Sale of firewood to a worker .......... (400)
Architect fees (for new building) ......... 30,000
Title investigation of land ........... 3,500
Property taxes on land (for the first year) ........ 3,000
Building construction costs ........... 400,000

Required:
Determine the amounts that the company should record in the Land and the New Building accounts.



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  • CreatedJuly 15, 2014
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