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HW_7 Answers - Exercises(5-10 min Land = E 7-15 $150,000...

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Exercises (5-10 min.) E 7-15 Land: $150,000 + $150,000 + $2,000 + $2,500 + $6,000 = $310,500 Land improvements: $65,000 + $10,400 + $6,000 = $81,400 Building: $50,000 + $1,000,000 = $1,050,000
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(5-10 min.) E 7-17 Capital expenditures: (a) Sales tax, (b) transportation and insurance, (c) purchase price, (d) installation, (e) training of personnel, (f) reinforce- ment to platform, (h) major overhaul, (j) lubrication before machine is placed in service Immediate expenses: (g) Income tax, (i) ordinary recurring repairs, (k) periodic lubrication
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(15 min.) E 7-18 Journal ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 1. a. Land…………………………………………… 480,000 Cash………………………………………... 480,000 b. Building ($1,000 + $15,000 + $660,000 + $39,000)... 715,000 Note Payable……………………………… 660,000 Cash ($1,000 + $15,000 + $39,000) ……. 55,000 c. Depreciation Expense……………………… 2,750 Accumulated Depreciation ($715,000 $330,000) / 35 × 3/12……… 2,750 2. BALANCE SHEET Plant assets: Land………………………………………... $480,000 Building…………………………………….
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