Question
Nash 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
Nash 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 $988
Architect's fees 6,023
Cash paid for land and dilapidated building thereon 165,300
Removal of old building $38,000
Less: Salvage 10,450 27,550
Interest on short-term loans during construction 14,060
Excavation before construction for basement 36,100
Machinery purchased (subject to 2% cash discount, which was not taken) 104,500
Freight on machinery purchased 2,546
Storage charges on machinery, necessitated by noncompletion of
building when machinery was delivered 4,142
New building constructed (building construction took 6 months from
date of purchase of land and old building) 921,500
Assessment by city for drainage project 3,040
Hauling charges for delivery of machinery from storage to new building 1,178
Installation of machinery 3,800
Trees, shrubs, and other landscaping after completion of building
(permanent in nature) 10,260
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 $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount
Architect's fees enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
Cash paid for land and old building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
Removal of old building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
Interest on loans during construction enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
Excavation before construction enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
Machinery purchased enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
Freight on machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
Storage charges caused by noncompletion of building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
New building enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
Assessment by city enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
Hauling charges - machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
Installation - machinery enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount
Landscaping enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount $ enter a total amount $enter a total amount $enter a total amount $enter a total amount
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