117-B-A-I-A_(2092) - ($20,000 – $5,500 14,500 Surveying...

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Ben Sisko Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. .:. Instructions Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Indicate how any costs not debited to these accounts should be recorded. SOLUTION: Land Buildings M&E Other Abstract fees $ 520 Architect’s fees $ 2,800 Cash paid for land and old building 87,000 Removal of old building
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Unformatted text preview: ($20,000 – $5,500) 14,500 Surveying before construction 370 Interest on loans during construction 7,400 Excavation before construction 19,000 Machinery purchased $53,900 $1,100 —Misc. expense Freight on machinery 1,340 (Discount Lost) Storage charges caused by noncompletion of building 2,180 —Misc. expense (Loss) New building 485,000 Assessment by city 1,600 Hauling charges—machinery 620 —Misc. expense Installation—machinery 2,000 (Loss) Landscaping 5,400 _______ ______ _____ $109,020 $514,570 $57,240 $3,900...
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