Perfect Skin Care Manufacturer purchased land for $350,000, paying $150,000 in cash and signed a note payable

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Perfect Skin Care Manufacturer purchased land for $350,000, paying $150,000 in cash and signed a note payable of $200,000. In addition, Perfect Skin Care paid delinquent property tax of $6,800 and title insurance costing $4,200 for the land. In order to rebuild the new factory, Perfect Skin also paid $13,000 to level the land and remove an unwanted building. The company then constructed a factory at a cost of $550,000 and paid architect’s fees of $12,600. It also paid $38,000 for a fence around the factory and $3,300 for lighting of the grounds.
Requirements 

1. Determine the cost for the land, land improvements, and factory.
2. Journalize the transactions for the land, land improvements, and factory.

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Horngrens Financial And Managerial Accounting The Managerial Chapters

ISBN: 9781292412337

7th Global Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

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