a$.$ $$121,000$

b$.$ $$132,000$

c$.$ $$114,000$

d$.$ $$126,000$

purchase price $+$ transportation cost $+$ installation costs $+$ acquisitions fees

$14.$ Expenditures that add to the utility of fixed assets for more than one accounting period are

a$.$ committed expenditures

b$.$ capital expenditures

c$.$ utility expenditures

d$.$ revenue expenditures

$15.$ Falcon Company acquired an adjacent lot to construct a new warehouse, paying $$40,000$ and giving a short$-$term note for $$410,000.$ Legal fees paid were $$13,275,$ delinquent taxes assessed were $$14,500,$ and fees paid to remove an old building from the land were $$15,800.$ Materials salvaged from the demolition of the building were sold for $$6,800.$ A contractor was paid $$890,000$ to construct the new warehouse. Determine the cost of the land to be reported on the balance sheet. $($Initial cost of land $+$ paid amount $+$ legal fees $+$ delinquent fees $+$ demolition of building $-$salvage materials$)$ $

$16.$ The amount borrowed is equal to the face amount of the note on an interest$-$bearing note payable.

True or False

$17.$ The discount on a note payable is charged to an account that has a normal credit balance.

True or False

$18.$ On June $1,$ Davis Inc. issued an $$84,000,5\%,120-$day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June $30.$ Using the $360-$day year, what is the amount of interest revenue recognized by Garcia in the following year? Round your answer to the nearest whole dollar. $($note payable $*$ percent $*(120-29)/360)$

a$.$ $$4,200$

b$.$ $$700$

c$.$ $$1,600$

d$.$ $$1,062$

$19.$ Journalize the following entries on the books of the borrower and creditor. $($Assume a $360-$day year is used for interest computations.$)$ Remember: Debits go on the left, and credits go on the right. Credits are indented.

June $1$ James Co$.$ purchased merchandise on account from O'Leary Co$.,$ $$90,000,$ terms $\frac{n}{30}.$ The cost of merchandise sold was $$54,000.$

June $30$ James Co$.$ issued a $60-$day, $5\%$ note for $$90,000$ on account.

Aug. $29$ James Co$.$ paid the amount due.

James Co$.($Borrower$).$

June $1$ Merchandise Inventory Accounts Payable

June $30$ Accounts Payable

Notes Payable

Aug $29$ Notes Payable

Interest Expense $*$