Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help please On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $710,000. Additionally, Blackstone paid

help please
image text in transcribed
image text in transcribed
On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $710,000. Additionally, Blackstone paid a real estate broker's commission of $47000, legal fees of $6,500, and title insurance of $23,500. The closing statement indicated that the land value was $555,000 and the building value was $155,000. Shortly after acquisition, the building was razed at a cost of $86,000 Blackstone entered into a $4,100,000 fixed-price contract with Barnett Builders, Inc., on March 1, 2021, for the construction of an office building on land site 11. The building was completed and occupied on September 30, 2022. Additional construction costs were incurred as follows: Plans, specifications, and blueprints Architects' fees for design and supervision $23,000 95,000 To finance the construction cost, Blackstone borrowed $4,100,000 on March 1, 2021. The loan is payable in 10 annual installments of $410,000 plus interest at the rate of 12%. Blackstone's average amounts of accumulated building construction expenditures were as follows: For the period March 1 to December 31, 2021 For the period January 1 to September 30, 2022 $1,010,000 2,850,000 Required: 1. Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site 11 as of September 30, 2022 2. Prepare a schedule that discloses the Individual costs that should be capitalized in the office building account as of September 30, 2022 2022 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule that discloses the Individual costs making up the balance in the land account in respect of land site 11 as of September 30, 2022 BLACKSTONE CORPORATION Land Account (Site Number 11) As of September 30, 2022 Balance, September 30, 2022

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Research On Professional Responsibility And Ethics In Accounting Volume 21

Authors: Cynthia Jeffrey

1st Edition

1787549739, 9781787549739

More Books

Students also viewed these Accounting questions

Question

Describe the concept of diversity and diversity management.

Answered: 1 week ago

Question

How does the EEOC define sexual harassment?

Answered: 1 week ago