Lynch Brothers manufactures conveyor belts. Early in January 2015, Lynch Brothers constructed its own building at a

Question:

Lynch Brothers manufactures conveyor belts. Early in January 2015, Lynch Brothers constructed its own building at a materials, labour, and overhead cost of $ 900,000. Lynch Brothers also paid for architect fees and building permits of $ 72,000.

Requirements

1. How much should Lynch Brothers record as the cost of the building in 2015?

2. Record Lynch Brothers’ transactions related to the construction of the building.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 978-0132889711

1st Canadian Edition

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

Question Posted: Jul 08, 2015 02:38 AM

See More Questions

Kessel Co. purchased goods with a list price of $230,000 and a trade discount of 20% based on the quantity purchased, with terms 2/10, net 30. How much should Kessel Co. record as the purchase cost...
A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $500,000; March 31, $600,000;...
The Harshman Company constructed a building for its own use. The company incurred costs of $20,000 for materials and supplies, $48,000 for direct labor, and $4,000 for a supervisors overtime that was...
Identify possible opportunities for denormalizing these relations as part of the physical design of the database. Which ones would you be most likely to implement
Suppose that loan sharks propose legislation to promote their industry. They want a legal right to break the kneecaps of loan defaulters. a. Suppose you were hired as a lobbyist for the loan sharks....
Three motion diagrams A are shown. Which is a dust particle settling to the floor at constant speed, which is a ball dropped from the roof of a building, and which is a descending rocket slowing to...
A small card is placed on top of a spool as shown in Fig. P3.121. It is not possible to blow the card off the spool by blowing air through the hole in the center of the spool. The harder one blows,...
An examiners close inspection of the annual financial statements and the accounting records revealed that Mawani Inc. may have violated some accounting principles. The examiner questioned the...
Discuss some of the myths associated with teen pregnancy? Why are these myths incorrect and what harm can they do? How can we as workers in the fieldwork to help change these perceptions?
A long steel circular tube of 25.4 cm diameter and 0.32 cm wall thickness is subjected to an interior pressure of 4.83 MPa. The ends of the tube are closed. The yield stress of the steel is 227 MPa....
Trinh Technologies Company (TTC) has two intangible assets at the end of the year. 1. Signed a 5-year lease for an office on March 1. TTC immediately spent $ 35,000 for leasehold improvements. TTC...
Tonyas Tanning Salon bought three tanning beds in a $ 10,000 lump-sum purchase. An independent appraiser valued the tanning beds as follows: Tanning Bed Appraised Value 1$ 3,000 2 5,000 3. 4,000...
The Fries rearrangement occurs when a phenolic ester is heated with a Friedel-Crafts catalyst such as AlCl3: The reaction may produce both ortho and para acylated phenols, the former generally...
How do the lakers, or any other sports team use the BLIP model? 1b. What would you do differently than the organization you selected, in any of the stages of the BLIP Model?...
what repercussions may the justice system face by keeping a pretrial detainee?
What factor exists when external obsolescence is caused by factors not on the subject property?
Anticompetitive practices are various types of activities that a company or group of companies may engageto restrict competition among companies and gain an advantage over rivals. Epic Games CEO...
How many numbers from 0 to 999 Hint: Think of such numbers as 3-digit strings, with leading 0-s if necessary. Explain briefly are even? are even and have distinct digits? have exactly one digit 9?
Define and comment on the relationship between CPU, NVIDIA, CUDA, and deep learning.
Find the radius of convergence of? 1.2.3 1.3.5 (2n-1) r2n+1 -1
Indicate whether each statement is true or false (a) GAAP is a set of rules and practices established by accounting standard-setting bodies to serve as a general guide for financial reporting...
The accompanying chart shows the qualitative characteristics of useful accounting information. Fill in theblanks. Enhancing Qualities Fundamental Qualities Usefulness Relevance Consistency (a) (e)...
Given the characteristics of useful accounting information, complete each of the following statements. (a) For information to be _____, it should have predictive and confirmatory value. (b) _____ is...
A company is faced with the decision of whether to lease or purchase new equipment. The equipment can be leased at an annual cost of $210,000 or purchased for $560,000. The equipment has an expected...
Braverman Company has two manufacturing departments-Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $28.00 per direct labor-hour and 120% of direct...
A stock had returns of 28%, 1%, and 13% over the previous 3 years. The average return on this stock over the 3-year period was 14%. What was the variance of this stock's returns over the previous 3...

Lynch Brothers manufactures conveyor belts. Early in January 2015, Lynch Brothers constructed its own building at a

Question:

Step by Step Answer:

Req 1 Cost of building in 2015 Construction cost 900000 ...View the full answer

Financial Accounting

Students also viewed these Accounting questions