$1$:$36$

Back Accounting$\_$II$-\_$Assignment$\_9-\_$Capital$\_$A$...$

$2$ of $3$

Assignment Exercise $2$:

In January $2024,$ ABC Quebec Inc buys a building for $$1,250,000$ which was all financed by a Mortgage from National Bank except for the $20\%$ down payment which the company made in cash. The company also paid the following fees in cash to get the building ready for its operations: Contractor fees for $$32,000$ to build new offices and the material costs were for $$16,500.$

In February $2024,$ the company also bought an Equipment from USA to be used in their operation. The cost of the equipment was $$45,000,$ which was entirely financed by the vendor through a note payable for the same amount.

However, the company paid in cash some expenses including $$6,750$

Sales taxes, $$1,500$ for testing and maintaining unique features, $$2,200$ installation cost, $$1,350$ transportation charges and $550$$ insurance on the equipment while being in transit between US$-$ Canada borders. The equipment arrived in the company on March $5^{th},2024.$

The company bought insurance on the equipment with $$100$ per month fee and it paid in cash $$800$ for the entire $2024$ balance in March $2024.$ In July $2024,$ they incurred $$600$ repair and maintenance expense to fix a bug detected on the machine which also they paid it in cash right away. The company's Year End is December ${31}^{st}.$

All the provided costs are in Canadian Currency.

Requirement:

What is the company's cost of their purchased building?

What is the company's cost of their purchased Equipment?

Provide all the required Journal Entries for $2024$ Year End