Problem 1 Required: a) Calculate the acquisition cost of the land. Identify each element of cost clearly. b) Calculate the acquisition cost of the new building. Identify each element of cost clearly Baril Company purchased land for $115,000 with the intentions of constructing a new operating facility. The land purchase included a dilapidated building that was removed at a cost of $16,000. The only salvage value from this old building was some materials which were sold for proceeds of $4,000. Baril had paid surveying costs of $1,800 and legal fees related to land transfer of $6,700. The new building was quickly constructed at a total cost of $422,000. Architectural drawings and permits on the construction of this new facility totaled $18,000 and $10,650 respectively. Insurance premiums of $9,200 are paid annually. The production manager is currently on-site facilitating the production start-up. This manager is an annual salary of $85,000. Problem 2 Required: Prepare the adjusting entries that were made by the Dunbar Zoo on December 31, 2017. If no adjusting entry is required, please type "NO ENTRY" in the appropriate space. The Dunbar Zoo operates a drive-through tourist attraction in Hamilton. The selected accounts appearing below reflect balances on January 1, 2017. Prepaid Rent (expires on Nov 30, 2017) 11,000 Prepaid Insurance (expires on Sep 30, 2017) 9,000 Car 30,000 Accumulated Amortization - Car 2,000 Unearned Ticket Revenue 15,000 Other Data On December 1, 2017 the Zoo renewed the rent contract for another year for $18,000 to be paid in three installments. The first installment is due on April 1, 2018. On October 1, 2017, the Zoo renewed the insurance policy for six months and paid $6,000. The full amount was recorded as an expense. The unearned ticket revenue represents tickets sold in advance for future zoo visits. During 2002, additional $12,000 of tickets were sold in advance and were recorded as revenue earned. On December 31, 2017, it was determined that $4,000 of the tickets sold in advance were not used by customers. A utility bill for $2,000 was received on December 31, 2017 for the amount of utility used up during November and December 2017. The bill is due on January 15, 2018 On December 1, 2017, the Zoo signed a contract with the Mifflin Food to supply food for the animals for an amount of $500 per month, effective January 1, 2018. The Zoo paid $4,000 in advance and recorded it as an asset. Problem 3 Required: Prepare the October bank reconciliation and the journal entries required for Omega Pool Service. The following information is provided for Omega Pool Service at the end of October 2016. Account: Date Oct 1 Oct 1 Oct 4 Oct 7 Oct 11 Oct 12 Oct 18 Oct 23 Oct 27 Oct 31 Cash Description Opening Balance Deposit Chq #64 Office Supply Company Chq #61 Salary Chq #75 Lighting Supply Deposit Chq #67 Shelby Legal Chq #71 Hydro Company Chq #78 Bill's Maintenance Deposit GL No: 101 DR CR Balance $72,300 DR S5.890 $78,190 DR $3,400 $ 74,790 DR $4,670 $70,120 DR $8,890 $61,230 DR $10,200 $71.430 DR $3,460 $67,970 DR 7.890 $60,080 DR |$3,480 556,600 DR $10,600 $67,200 DR BANK STATEMENT Withdrawal $4,670 Date Explanation Oct 1 Opening Balance Oct 2 Deposit Oct 8 Chq #61 Oct 13 Deposit Oct 18 Chg #64 Oct 23 Chq #67 Oct 31 Service Charge Oct 31 Interest *Any cheque errors were cashed correctly by the bank. Deposit Balance $72,300 $5,890 $78,190 $73.520 S10,200 $83.720 $83,040 $79,580 $78,750 $420 $79,170 S680 $3,460 58301 Problem 4 Required: A) Prepare a schedule of cash receipts for October, November, and December. B) Prepare a cash budget for the same period. Top Shoppe has forecast its sales revenues and purchases for the last 5 months of 20X5 to be as follows: Sales Purchases August $22,000 $17,000 September 15,000 19,500 October 25,000 29,000 November 30,000 20,000 December 26,000 24,000 Sixty percent of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale. Purchases are paid 30 days after they are incurred. The firm has a cash balance of $5,000 on hand as of October 31, but its minimum required cash balance is $4,000