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Exercise 10-5 Flint Supply Company, a newly formed corporation, incurrred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's
Exercise 10-5 Flint Supply Company, a newly formed corporation, incurrred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company's fee for title search $676 Architect's fees 4,121 Cash paid for land and dilapidated building thereon 113,100 Removal of old building $26,000 Less: Salvage 7,150 18,850 Interest on short-term loans during construction 9,620 Excavation before construction for basement 24,700 Machinery purchased (subject to 2% cash discount, which was not taken) 71,500 Freight on machinery purchased 1,742 Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 2,834 New building constructed (building construction took 6 months from date of purchase of land and old building) 630,500 Assessment by city for drainage project 2,080 Hauling charges for delivery of machinery from storage to new building 806 Installation of machinery 2,600 Trees, shrubs, and other landscaping after completion of building (permanent in nature) 7,020 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 Other Buildings Machinery and Equipment Abstract company's fee for title search $ $ $ $ Architect's fees Cash paid for land and old building Removal of old building Interest on short-term loans during construction Excavation before construction for basement Machinery purchased Freight on machinery purchased Storage charges on machinery New building constructed Assessment by city for drainage project Hauling charges Installation of machinery Trees, shrubs, and other landscaping
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