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Accounting Question HELP! Martin Buber Co. purchased land as a factory site for $400,000 cash. Legal fees of $1,850 were paid for title investigation and
Accounting Question HELP!
Martin Buber Co. purchased land as a factory site for $400,000 cash. Legal fees of $1,850 were paid for title investigation and drawing the purchase contract. Title insurance on the property cost $1,500. The company paid $42,000 to raze the old buildings and sold salvaged lumber and brick for $6,300. Prior to drawing up factory plans, Martin Buber paid $2,200 to an engineering firm for a land survey. The land survey was necessary for architectural purposes before definitive plans could be drawn. Fees paid to 2 of 9 Chapter 10 Homework - PPE Acquisitions the architectural firm for drawing the factory plans were $68,000. The contractor's charge for construction was $2,740,000, which Martin Buber paid in two installments: $1,200,000 at the 40% completion milestone and $1,540,000 upon completion. The company paid a liability insurance premium of $900 during construction. It also took out a loan to finance this construction project, incurring $170,000 of interest (note: interest on qualified construction loans are capitalizable). Instructions: Journalize the purchase. All amounts were paid with cash. Date Account Debit Credit MM/DD/YYYYStep by Step Solution
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