Answered: Indicate whether each of the following… | bartleby

College Accounting, Chapters 1-27

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 1SEA

See similar textbooks

Related questions

Question

Indicate whether each of the following expenditures should be classified as land, land improvements, buildings, equipment, or none of
these.
1.
2.
Parking lots
Electricity used by a machine
3.
Excavation costs
4.
Interest on building construction loan
5.
Cost of trial runs for machinery
6.
Drainage costs
7.
Cost to install a machine
8.
Fences
9.
Unpaid (past) property taxes assumed
10.
Cost of tearing down a building when land and a building on it are purchased

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Blurred answer

Similar questions

Gallon Auto purchased a neighboring lot for a new building and parking lot. Indicate whether each of the following expenditures is properly charged to (a) Land, (b) Land Improvements, or (c) Buildings:a. Paving costsb. Architects’ fee for building designc. Cost of clearing the propertyd. Cost of the propertye. Building construction costsf. Lights around the propertyg. Building permith. Interest on the construction loan
Indicate whether each of the following expenditures should be classified as land (L), land improvements (LI), buildings (B), equipment (E), or none of these (X). _____ 1. Parking lots _____ 2. Electricity used by a machine _____ 3. Interest on building construction loan _____ 4. Cost of trial runs for machinery _____ 5. Drainage costs _____ 6. Cost to install a machine _____ 7. Fences _____ 8. Unpaid (past) property taxes assumed _____ 9. Cost of tearing down a building when land and a building on it are purchased
1. The cost of land typically includes the purchase price and all of the following costs except A) private driveways and parking lots. B) assumption of any liens or mortgages on the property. C) street lights, sewers, and drainage systems cost. D) grading, filling, draining, and clearing costs.
Question - 1 Indicate whether each of the following expenditures should Improvements (LI), buildings (B), equipment (E), or none of these (X). IL 1. Parking lots X 2. Electricity used by a machine B 3. Excavation costs B 4. Interest on building construction loan E 5. Cost of trial runs for machinery L 6. Drainage costs 7. Cost to install a machine 4 8. Fences k 9. Unpaid (past) property taxes assumed 10. Cost of tearing down a building when land and a building on it are purchased Question - 2 Seller Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, SR 50,000; broker's fees, SR 6.000;) title (search and other fees, SR 5,000; demolition of an old building on the property, (SR 5,700 grading, SR 1,200digging foundation for the road, SR 3,000; laying and paving driveway, SR 25,000; lighting SR 7,500; signs, SR 1,500. List the items and amounts that should be included…
Which of the following is recorded as a cost when purchasing an existing building? A. cost to renovate the building before it is in use B. fencing O C. land where the building is located O D. parking lot around the building
Classify whether the following is capital expenditure or revenue expenditure:a. Purchase of dust cover for the computer printer.b. Payment made to get the building permit for the construction of storage shed.
Which of the following would be considered a capital expenditure? (A 22) O Making a payment on accounts payable O Paying accumulated income taxes O Paying shipping insurance on new equipment Retiring a bond payable taken out for construction Which of the following costs CANNOT be capitalized as part of land? Price paid to purchase the land. Clearing old buildings and other obstructions Obligations assumed when buying the land Overhead costs for construction projects on the land
Which of the following is considered capital expenditure Select one: a. Research expenses. b. Purchase of office consumables. c. Cost of material to construct new plant. d. Staff overtime.
Which of the following items should be accounted for as a capital expenditure?a. The monthly rental cost of an office buildingb. Costs incurred to repair leaks in a building’s roofc. Maintenance fees paid with funds provided by the company’s capitald. Taxes paid in conjunction with the purchase of office equipment
Trinkle Company made several purchases of long-term assets during the year. The details of each purchase are presented here. New Office Equipment 1. List price: $42,600; terms: 2/10, n/30; paid within the discount period. 2. Transportation-in: $880. 3. Installation: $400. 4. Cost to repair damage during unloading: $630. 5. Routine maintenance cost after eight months: $150. Basket Purchase of Copier, Computer, and Scanner for $52,500 with Fair Market Values 1. Copier, $23,421. 2. Computer, $12,027. 3. Scanner, $27,852. Land for New Warehouse with an Old Building Torn Down 1. Purchase price, $83,800. 2. Demolition of building, $4,760. 3. Lumber sold from old building, $1,780. 4. Grading in preparation for new building, $7,900. 5. Construction of new building, $279,000.
Required: 1. At what amount should Edwards record the cost of the land and the new building, respectively? If an input box should be blank, enter a zero. Land Building Purchase price of land Demolition of old building Architect's fees Legal fees Construction costs Salvaged materials Total 2. Next Level If management misclassified a portion of the building's cost as part of the cost of the land, what would be the effect on the financial statements?
Indicate whether each of the following statements is true or false. When land with an old building is purchased as a future building site, the cost of removing the old building is part of the cost of the new building. Answer Special assessments for local improvements such as streetlights and sewers should be accounted for as land improvements. Answer Avoidable interest is the amount of interest cost that a company could theoretically avoid if it had not made expenditures for the asset.

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting, Chapters 1-27

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

College Accounting, Chapters 1-27

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

SEE MORE TEXTBOOKS