Cala Manufacturing purchases land for $393,000 as part of its plans to build a new plant.The company
Question:
Cala Manufacturing purchases land for $393,000 as part of its plans to build a new plant. The company pays $29,600 to tear down an old building on the lot and $43,756 to fill and level the lot. It also pays for construction costs of $1,701,600 for the new building and $107,410 for lighting and paving a parking area.
Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.
Record the total costs of plant assets.
Rodriguez Company pays $405,405 for real estate with land, land improvements, and a building. The land is valued at $193,500; land improvements are valued at $64,500; and a building is valued at $172,000.
Required:
1. Allocate the total cost among the three assets.
2. Prepare the journal entry to record the purchase.
Rizio Co. purchases a machine for $9,700, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $97 discount. Rizio paid transportation costs of $219. The machine required assembly and electrical hookups which cost $671. Another $316 is paid to assemble the machine and $40 of materials are used to get it running. During installation, the machine was damaged and $345 worth of repairs were made.
calculate the recorded cost for this machine.
Kegler Bowling purchases a scoring equipment with an invoice cost of $200,000. Electrical work required for installation costs $21,000. Additional costs are $4,200 for delivery and $14,410 for sales tax. During installation, the equipment was damaged and the cost to repair was $1,940.
What is the total recorded cost of the score recording equipment?
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta