ACCT$125-$ Introductory Accounting II

Assignment #$1$

Chapter $9$

$39$ marks

Name:

Student Number:

Moksh $.$

Caronport Carpentry Shop, to construct a new office building for themselves, purchased a tract of land with an old unsuitable building on it$.$ They plan to remove the building and make the following transactions. Prepare a schedule showing the amounts to be recorded as Land, Building, Equipment, and Operating Expenses. $(10$ marks$)$

$\backslash$table$[[$Purchase of machinery and equipment,$$,63,878],[$Construction costs of new building.,$$,1,444,444],[$Installation of machinery and equipment,$$,7,247],[$Clearing of land for parking lot,$$,5,825],[$Installation of new roof,$$,1,443],[$Security costs of completed property,$$,3,552],[$Survey of the site for the new building,$$,6,256],[$Parking lot snow removal for building occupants,$$,1,478],[$Electricity to operate machinery once installed,$$,699],[$Freight on machinery purchased,$$,1,470]]$

Caronport Carpentry Shop recently negotiated a lump$-$sum purchase of several assets from another business. They completed the purchase on June $30,2023,$ at a total cash price of $$384,299$ which included land, parking lot, landscaping, and car. The estimated fair market values of the assets were land $$284,208,$ parking lot $$22,823,$ landscaping $$83,051,$ and car $$18,747.$ The Company has a September $30$ year$-$end. Prepare a schedule to allocate the lump$-$sum purchase to separate assets. Also, prepare the general journal entry to record the transaction. $(7$ marks$)$