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Ayayai Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's fee for
Ayayai Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's fee for title search $754 Architect's fees 4,597 Cash paid for land and dilapidated building thereon 126,150 Removal of old building $29,000 Less: Salvage 7,975 21,025 Interest on short-term loans during construction 10,730 Excavation before construction for basement 27,550 Machinery purchased (subject to 2% cash discount, which was not taken) 79,750 Freight on machinery purchased 1,943 Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 3,161 New building constructed (building construction took 5 months from date of purchase of land and old building) 703,250 Assessment by city for drainage project 2,320 Hauling charges for delivery of machinery from storage to new building 899 Installation of machinery 2,900 Trees, shrubs, and other landscaping after completion of building (permanent in nature) 7,830 Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.) Land Buildings Machinery and Equipment Other Abstract fees $ $ Architect's fees Cash paid for land and old building Removal of old building Interest on loans during construction Excavation before construction Machinery purchased Freight on machinery Storage charges caused by noncompletion of building New building Assessment by city Hauling charges - machinery Installation - machinery Landscaping
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