In the case of land purchased for the purpose of building a new office for company use, if the cost was $ 90,000, other costs were $ 2,500 for construction plans, $ 1,050 for a fence around the land, $ 4,750 for the installation of electrical facilities, $ 1,250 for the hiring of a security guard, $ 3,450 for a `` shot '' of gravel and tar, $ 2,000 from the State Insurance Fund policy and $ 5,000 permitting of the municipality of Medellin, and on the other hand, we sold some rubble for $ 1,500 that already existed on that land, when would the cost be recorded as the total cost of the land? Assuming that $ 20,000 was contributed to the purchase of the land and the rest was financed, make the wage entries corresponding to the previous situation presented. Also assume that a small building was simultaneously constructed whose costs including permits, materials, labor, building permits, and others totaled $ 45,000, what would that building cost? and what would be the daily income for it? Regarding the previous table, why should the entrances of the land and the building be made separately?

Answer rating: 100% (QA)

First case journal entry would be Land account debit 90000 To cash 2000 To Ba... View the full answer