Requirements 1. Show what the company reported for supplies, plant assets, and cash flows at the end of the first year on its • income statement, balance sheet, and • statement of cash flows (investing only). Note: The purchase of dishes and supplies is an operating cash flow because supplies are a current asset. Print Done X
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- On January 1, 2018, Absolutely Bar & Grill purchased a building, paying $57,000 cash and signing a $100,000 note payable. The company paid another $66,000 to remodel the building. Furniture and fixtures cost $56,000, and dishes and supplies—a current asset—were obtained for $8,600. All expenditures were for cash. Assume that all of these expenditures occurred on January 1, 2018. Absolutely is depreciating the building over 25 years using the straight-line method, with estimated residual value of $54,000. The furniture and fixtures will be replaced at the end of five years and are being depreciated using thedouble-declining-balance method, with a residual value of zero. At the end of the first year, the company still had dishes and supplies worth $1,900. Show what the company will report for supplies, plant assets, and cash flows at the end of the first year on its income statement, balance sheet, and statement of cash flows. Begin with the income statement.…Assume that in January 20X6, a Hotcake House restaurant purchased a building, paying $57,000 cash and signing a $108,000 note payable. The restaurant paid another $60,000 to remodel the bui and fixtures cost $54,000, and dishes and supplies-a current asset-were obtained for $10,200. Hotcake House is depreciating the building over 20 years by the straight-line method, with estimate value of $55,000 The fumiture and fixtures will be replaced at the end of five years and are being depreciated by the double-declining-balance method, with zero residual value. At the end of the first restaurant still has dishes and supplies worth $1,900. Requirement 1. Show what the restaurant will report for supplies, PPE, and cash flows at the end of the first year on its. • Income Statement • Balance Sheet • Statement of Cash Flows (investing only) Note The purchase of dishes and supplies is an operating cash flow because supplies are a current asset. Requirement 1. Show what the restaurant will report…On March 1, 2021, Sage Hill Company acquired real estate on which it planned to construct a small office building. The company paid $100,000 in cash. An old warehouse on the property was razed at a cost of $7,900; the salvaged materials were sold for $1,800. Additional expenditures before construction began included $1,400 attorney's fee for work concerning the land purchase, $4,100 real estate broker's fee, $8,200 architect's fee, and $13,600 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land. Cost of the land $
- On January 1, 2020, a city purchased office supplies for $103,000. During the year, $78,000 of these supplies were used. Required: Record the journal entries for these transactions using the purchases method (disregard the encumbrance entries).On March 1, 2025, Crane Company acquired real estate, on which it planned to construct a small office building. by paying $86,500 in cash. An old warehouse on the property was demolished at a cost of $9.500; the salvaged materials were sold for $1,960. Additional expenditures before construction began included $1,460 attorney's fee for work concerning the land purchase, $5,150 real estate broker's fee. $8,960 architect's fee, and $15,300 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of the land $On March 1, 2019, Westmorlan Company acquired real estate on which it planned to construct a small office building. The company paid $75,000 in cash. An old warehouse on the property was razed at a cost of $8,600; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,100 attorney’s fee for work concerning the land purchase, $5,000 real estate broker’s fee, $7,800 architect’s fee, and $14,000 to put in driveways and a parking lot.(a)Determine the amount to be reported as the cost of the land.
- On March 1, 2025, Sandhill Supply Company acquired real estate, on which it planned to construct a small office building, by paying $90,500 in cash. An old warehouse on the property was demolished at a cost of $14,000; the salvaged materials were sold for $4,000. Additional expenditures before construction began included $3,400 attorney's fee for work concerning the land purchase, $7,400 real estate broker's fee, $11,000 architect's fee, and $25,000 to put in driveways and a parking lot. Your answer is correct. Determine the amount to be recorded as the cost of the land. Cost of the land eTextbook and Media List of Accounts Your answer is partially correct. 111,300 For each cost not used in previous part, indicate the account to be debited. Account to be debited 11,000 25,000On March 1, 2020, Westmorlan Company acquired real estate on which it planned to construct a small office building. The company paid $75,000 in cash. An old warehouse on the property was razed at a cost of $8,600; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,100 attorney’s fee for work concerning the land purchase, $5,000 real estate broker’s fee, $7,800 architect’s fee, and $14,000 to put in driveways and a parking lot.Instructions(a) Determine the amount to be reported as the cost of the land.(b) For each cost not used in part (a), indicate the account to be debited.Ivanhoe Company purchased land, a building, and equipment on January 2, 2021, for $940,000. The company paid $160,000 cash and signed a mortgage note payable for the remainder. Management's best estimate of the value of the land was $388,000; of the building, $446,200; and of the equipment, $135,800. Record the purchase. (Use Mortgage Payable for account.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 2 (To record purchase of property.) Debit Credit
- On March 1, 2022, Wildhorse Company acquired real estate, on which it planned to construct a small office building, by paying $98,000 in cash. An old warehouse on the property was demolished at a cost of $ 11,000; the salvaged materials were sold for $ 3,100. Additional expenditures before construction began included $ 2,000 attorney's fee for work concerning the land purchase, $ 6,300real estate broker's fee, $ 10,800 architect's fee, and $ 18,200 to put in driveways and a parking lot. For each cost not used in previous part, indicate the account to be debited. Account to be debited enter an account title $ enter a debit amount enter an account title $ enter a debit amountOn March 1, 2022, Blossom Company acquired real estate, on which it planned to construct a small office building, by paying $80,500 in cash. An old warehouse on the property was demolished at a cost of $8,300; the salvaged materials were sold for $1,720. Additional expenditures before construction began included $1,220 attorney's fee for work concerning the land purchase, $4,550 real estate broker's fee, $8.720 architect's fee, and $14,100 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land.On March 1, 2022, Ayayai Company acquired real estate on which it planned to construct a small office building, by paying $75,000 in cash. An old warehouse on the property was demolished at a cost of $8,000; the salvaged materials were sold for $1,500. Additional expenditures before construction began included $1,000 attorney’s fee for work concerning the land purchase, $4,000 real estate broker’s fee, $7,000 architect’s fee, and $13,000 to put in driveways and a parking lot.Determine the amount to be reported as the cost of the land. Cost of land $enter the cost of land in dollars