ch10 - Name: Date: Instructor: Course: Intermediate...

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f71554641bc8eab1020595e336fb28d5cc93a596.xlsx, Exercise 10-2, Page 1 of 4, 03/05/2012, 12:32:03 Name: Date: Instructor: Course: $450,000 . The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $42,000 to raze the old buildings and sold salvaged lumber and brick for $6,300 . Legal fees of $1,850 were paid for title investigation and drawing the purchase contract. Pollachek paid $2,200 to an engineering firm for a land survey, and $65,000 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,500 , and a liability insurance premium paid during construction was $900 The contractor’s charge for construction was $2,740,000 . The company paid the contractor in two installments: $1,200,000 at the end of three months and $1,540,000 upon completion. Interest costs of $170,000 were incurred to finance the construction. Instructions: Land Building Text Title Amount Text Title Amount Less: Salvage Amount Text Title Amount Text Title Amount Text Title Amount Text Title Amount Text Title Amount Text Title Amount Text Title Amount Formula Formula Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E10-2 (Acquisition Costs of Realty) Pollachek Co. purchased land as a factory site for Determine the cost of the land and the cost of the building as they should be recorded on the books of Pollachek Co. Assume that the land survey was for the building.
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f71554641bc8eab1020595e336fb28d5cc93a596.xlsx, Exercise 10-3, Page 2 of 4, 03/05/2012, 12:32:03 Name: Date: Instructor: Course: 1. Truck #1 has a list price of $15,000 and is acquired for a cash payment of $13,900 2. Truck #2 has a list price of $20,000 and is acquired for a down payment of $2,000 cash and a zero-interest bearing note with a face amount of $18,000 The note is due April 1, 2013, Shabbona would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has an incremental borrowing rate of 8% 3. Truck #3 has a list price of $16,000 It is acquired in exchange for a computer system that Shabbona carries in inventory. The computer system costs $12,000 and normally sold by Shabbona for $15,200 Shabbona uses perpetual inventory system. 4. Truck #4 has a list price of
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This note was uploaded on 03/05/2012 for the course BUS 300 taught by Professor Greg during the Fall '11 term at Oglethorpe.

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ch10 - Name: Date: Instructor: Course: Intermediate...

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