Question
12A Granite Company purchased a machine costing $137,000, terms 3/10, n/30. The machine was shipped FOB shipping point and freight charges were $3,700. The machine
12A Granite Company purchased a machine costing $137,000, terms 3/10, n/30. The machine was shipped FOB shipping point and freight charges were $3,700. The machine requires special mounting and wiring connections costing $11,700. When installing the machine, $3,200 in damages occurred. Compute the cost recorded for this machine assuming Granite paid within the discount period.
12B Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $283,000 for the lot plus $178,000 for the old building. The company pays $28,900 to tear down the old building and $42,722 to fill and level the lot. It also pays a total of $1,280,425 in construction coststhis amount consists of $1,204,400 for the new building and $76,025 for lighting and paving a parking area next to the building. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.
12C A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $61,500; the land at $45,400, and the parking lot at $18,100. Land should be recorded in the accounting records with an allocated cost of:
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