A company made the following expenditures in connection with the construction of its new building: Architect's fees

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A company made the following expenditures in connection with the construction of its new building:


 Architect's fees for the new building ……………………………............$ 12,000 

Cash paid for land and run-down building on the land ……………300,000 

Removal of old building…………………………………..................………….18,000 

Salvage from sale of old building materials………….......………………(4,000) 

Construction survey to site the new building……………………......……1,500 

Legal fees for title search……………………………………………..................3,000 

Excavation for basement construction………………………........………25,000 

Machinery purchased for operations…………………………........……100,000 


Storage charges on machinery because building was not ready when machinery was delivered 

………………………………………………………………………............................…..900 

Freight on machinery purchased………………………........………………1,600

Hauling charges to delivery machinery from storage to new building …300

Construction costs of new building……………………….....………1,000,000

Landscaping………………………………………………………..................….20,000

Installation of machinery……………………………………...........…………2,500


Prepare a schedule showing the amounts to be recorded as Land, Buildings, and Machinery.

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Related Book For  book-img-for-question

Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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