Agro Business (A) began construction of a new processing plant on January 1,2020. On this date...
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Agro Business (A) began construction of a new processing plant on January 1,2020. On this date the company completed purchase of a plot of land for $215,000 in cash. In addition, it paid $ 20,000 in surveying cost and $40,000 in legal and related cost. The land was cleared of debris which had accumulated at an additional cost of $18,000 Architectural plans were commissioned on January 1 with an initial down payment of $50,000. Preliminary excavation of the foundation for the building began on February 1 based on temporary approval from the planning authority. On this date the first was made to the contractor of $620,000. On May 01, the plans were approved, and the final payment was made to the Architect $40,000 inclusive of building permits. The contractor received the second payment of $340,000 on September 01. The building was completed and handed over to AB on October 01, when the final payment of $80,000 was made to the Contractor. AB borrowed $1.400,000 from the Bank bearing interest at 8% for 10 years to finance this project. Compute the balance in each of the following accounts at December 31, 2020. (Round amounts to the nearest Dollar), Land Buildings Interest Capitalized Interest Expense Agro Business (A) began construction of a new processing plant on January 1,2020. On this date the company completed purchase of a plot of land for $215,000 in cash. In addition, it paid $ 20,000 in surveying cost and $40,000 in legal and related cost. The land was cleared of debris which had accumulated at an additional cost of $18,000 Architectural plans were commissioned on January 1 with an initial down payment of $50,000. Preliminary excavation of the foundation for the building began on February 1 based on temporary approval from the planning authority. On this date the first was made to the contractor of $620,000. On May 01, the plans were approved, and the final payment was made to the Architect $40,000 inclusive of building permits. The contractor received the second payment of $340,000 on September 01. The building was completed and handed over to AB on October 01, when the final payment of $80,000 was made to the Contractor. AB borrowed $1.400,000 from the Bank bearing interest at 8% for 10 years to finance this project. Compute the balance in each of the following accounts at December 31, 2020. (Round amounts to the nearest Dollar), Land Buildings Interest Capitalized Interest Expense
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Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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