Duckburger Joint, Inc. purchased an abandoned duck farm and a three-story duck residence. They removed the duck residence and constructed a restaurant with an adjoining parking lot. In addition, they purchased a new automatic duckburger machine. The following information is available for questions 25 to 28: Purchase of land cost $ 40,000 Purchase of duck residence cost 10,000 Delinquent real estate taxes 5,000 Blueprints for restaurant 5,000 Insurance during construction 1,000 Blacktop for parking lot 5,000 Cost to remove duck residence 2,000 Fence surrounding restaurant 2,000 Building construction costs 100,000 Attorneys fee for land purchase 1,000 Plastic plants in front of restaurant 1,000 Cost of duckburger machine 25,000 Machine freight charges 2,500 Machine installation charges 4,700 Cement foundation for machine 1,250 Estimated scrap value 2,500

25. The cost of the land would be:

a. $58,000

b. $56,000

c. $46,000

d. $45,000

e. none of the above

26. The cost of the restaurant would be:

a. $108,000

b. $106,000

c. $105,000

d. $100,000

e. none of the above

27. The cost of the land improvements would be:

a. $10,000

b. $8,000

c. $7,000

d. $5,000

e. none of the above

28. The cost of the duckburger machine would be:

a. $33,450

b. $32,200

c. $30,950

d. $25,000

e. none of the above

29. Which of the following situations would you consider to be a weakness in internal control?

a. The bank statement is reconciled monthly by an internal auditor.

b. Authorized check signers include only the treasurer and assistant treasurer.

c. Blank checks are not stored in a safe, but are kept in a locked, fireproof cabinet in the treasurers office.

d. Each day two mail clerks open all mail receipts.

e. The company accountant makes the daily bank deposit and then records the days receipts.

30. A check is written to replenish a $100 petty cash fund when the fund contains petty cash receipts of $93 and $3 in coins. In recording the replenishment:

a. petty cash should be debited for $93.

b. cash should be credited for $93.

c. petty cash should be credited for $3.

d. cash over and short should be credited for $4.

e. cash over and short should be debited for $4