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Linda Manufacturing Co. was incorporated on 1/2/25 but was unable to begin manufacturing activities until 8/1/25 because new factory facilities were not completed until
Linda Manufacturing Co. was incorporated on 1/2/25 but was unable to begin manufacturing activities until 8/1/25 because new factory facilities were not completed until that date. The Land and Buildings account set up by an inexperienced bookkeeper at 12/31/25 per the books was as follows: Date Item Amount 1/31/25 Land and dilapidated building $180,000 2/28/25 Cost of removing building 3,600 4/1/25 Legal fees 5,400 5/1/25 Fire insurance premium payment 4,860 5/1/25 Special tax assessment for streets 4,050 5/1/25 Partial payment of new building construction 189.000 8/1/25 Final payment on building construction 189.000 8/1/25 General expenses 27.000 12/31/25 Asset write-up 67.500 $670,410
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