3218 PM Thu NOV 2 .3) L80%-r 6 Ch 9 Homework Question 1 of5 > -/3 ¥= to. Blue Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's fee for title search $1,092 Architect's fees 6,657 Cash paid for land and dilapidated building thereon 182,700 Removal of old building $42,000 Less: Salvage 11,550 30,450 Interest on short-term loans during construction 15,540 Excavation before construction for basement 39,900 Machinery purchased (subject to 2% cash discount, which was not taken) 115,500 Freight on machinery purchased 2,814 Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 4,578 New building constructed (building construction took 6 months from date of purchase of land and old building) 1,018,500 Assessment by city for drainage project 3,360 Hauling charges for delivery of machinery from storage to new building 1,302 Installation of machinery 4,200 Trees, shrubs, and other landscaping after completion of building (permanent in nature) 11,340 Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the bene?ts of capitalizing interest during construction exceed the cost of implementation. Indicate how any costs not debited to these accounts should be recorded. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.) Machinery and Land Buildings A- ? ? E su PPORT $ $ $ bstract fees 

 

3218 PM Thu NOV 2 5? L 80% - r 6 Ch 9 Homework Question 1 of5 > - / 3 E .0. Abstract fees $ $ $ Architect's fees Cash paid for land and old building Removal of old building Interest on loans during construction Excavation before construction Machinery purchased Freight on machinery Storage charges caused by noncompletion of building New building Assessment by city Hauling charges - machinery Installation - machinery Landscaping 0 $ $ $

Transcribed Image Text:

pe here to search Blue Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's fee for title search $546 Architect's fees. 3,329 Cash paid for land and dilapidated building thereon 91,350 Removal of old building $21,000 Less: Salvage 5,775 15,225 Interest on short-term loans during construction 7,770 Excavation before construction for basement 19,950 Machinery purchased (subject to 2% cash discount, which was not taken) 57,750 Freight on machinery purchased 1,407 Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 2,289 New building constructed (building construction took 6 months from date of purchase of land and old building) 509,250 Assessment by city for drainage project Hauling charges for delivery of machinery from storage to new building Installation of machinery Trees, shrubs, and other landscaping after completion of building (permanent in nature) 1,680 651 2,100 HET 5,670 74°F Clear. A pe here to search Blue Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's fee for title search $546 Architect's fees. 3,329 Cash paid for land and dilapidated building thereon 91,350 Removal of old building $21,000 Less: Salvage 5,775 15,225 Interest on short-term loans during construction 7,770 Excavation before construction for basement 19,950 Machinery purchased (subject to 2% cash discount, which was not taken) 57,750 Freight on machinery purchased 1,407 Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 2,289 New building constructed (building construction took 6 months from date of purchase of land and old building) 509,250 Assessment by city for drainage project Hauling charges for delivery of machinery from storage to new building Installation of machinery Trees, shrubs, and other landscaping after completion of building (permanent in nature) 1,680 651 2,100 HET 5,670 74°F Clear. A