PROBLEM 10-1 - Balance at December 31, 2007 $749,000 Craig...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
PROBLEM 10-1 (a) Craig Ehlo Company ANALYSIS OF LAND ACCOUNT for 2007 Balance at January 1, 2007 $ 230,000 Land site number 621 Acquisition cost $850,000 Commission to real estate agent 51,000 Clearing costs $35,000 Less: Amounts recovered 13,000 22,000 Total land site number 621 923,000 Land site number 622 Land value 300,000 Building value 120,000 Demolition cost 41,000 Total land site number 622 461,000 Balance at December 31, 2007 $1,614,000 Craig Ehlo Company ANALYSIS OF BUILDINGS ACCOUNT for 2007 Balance at January 1, 2007 $ 890,000 Cost of new building constructed on land site number 622 Construction costs $330,000 Excavation fees 38,000 Architectural design fees 11,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Building permit fee 2,500 381,500 Balance at December 31, 2007 $1,271,500 Craig Ehlo Company ANALYSIS OF LEASEHOLD IMPROVEMENTS ACCOUNT for 2007 Balance at January 1, 2007 $660,000 Office space 89,000
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Balance at December 31, 2007 $749,000 Craig Ehlo Company ANALYSIS OF MACHINERY AND EQUIPMENT ACCOUNT for 2007 Balance at January 1, 2007 $875,000 Cost of the new machines acquired Invoice price $ 87,000 Freight costs 3,300 Unloading charges 2,400 92,700 Balance at December 31, 2007 $967,700 (b) Items in the fact situation which were not used to determine the answer to (a) above are as follows: 1. Interest imputed on common stock financing is not permitted by FASB Statement No. 34 and thus does not appear in any financial statement. 2. Land site number 623, which was acquired for $650,000, should be included in Ehlos balance sheet as land held for resale (investment section). 3. Royalty payments of $17,500 should be included as a normal operating expense in Ehlos income statement....
View Full Document

Page1 / 3

PROBLEM 10-1 - Balance at December 31, 2007 $749,000 Craig...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online