Please answer the attached
7-3 Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $30,000 and giving a short-term note for $270,000. Legal fees paid were $1,425, delinquent taxes assumed were $12,000, and fees paid to remove an old building from the land were $18,500. Materials salvaged from the demolition of the building were sold for $4,500. A contractor was paid $910,000 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet. Show your work. Exerci se 7-3 Calcul ate the cost of land: 7-4 Connect Lines Co. incurred the following costs related to trucks and vans used in operating its delivery service: 1. Replaced a truck's suspension system with a new suspension system that allows for the delivery of heavier loads. 2. Installed a hydraulic lift to a van. 3. Repaired a flat tire on one of the vans. 4. Overhauled the engine on one of the trucks purchased three years ago. 5. Removed a two-way radio from one of the trucks and installed a new radio with a greater range of communication. 6. Rebuilt the transmission on one of the vans that had been driven 40,000 miles. The van was no longer under warranty. 7. Changed the radiator fluid on a truck that had been in service for the past four years. 8. Tinted the back and side windows of one of the vans to discourage theft of contents. 9. Changed the oil and greased the joints of all the trucks and vans. 10. Installed security systems on four of the newer trucks. Classify each of the costs as a capital expenditure or a revenue expenditure. Exercise 7-4 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 7-8 A refrigerator used by a meat processor has a cost of $93,750, an estimated residual value of $10,000, and an estimated useful life of 25 years. What is the amount of the annual depreciation computed by the straight-line method? Exerci se 7-8 Show your work. Exercise 8-2 A business issued a 30-day, 4% note for $60,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Exerci se 8-2 a. Issuan ce of the note: b. Payme nt of the note, at maturi ty, includi ng interes t Exercise 8-5 Awesome Audio Works, Inc. warrants its products for one year. The estimated product warranty is 2% of sales. Assume that sales were $500,000 for January. In February, a customer received warranty repairs requiring $2,500 of parts. a. Determine the warranty liability at January 31, the end of the first month of the current year. b. What accounts are decreased for the warranty work provided in February? Exerci se 8-5 Show your work for part a. a. b. Exercise 8-11 According to a summary of the payroll of Newman Publishing Co., $600,000 was subject to the 7.5% FICA tax. Also, $50,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.3%; federal unemployment, 0.8%. b. Illustrate the effects on the accounts and financial statements of recording the accrual of payroll taxes. Exerci se 8-11 a. b. Show your work
