Q2. On the 10th of July 2023, ABC Company purchased land to construct a building to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Q2. On the 10th of July 2023, ABC Company purchased land to construct a building to be used as a headquarters. The purchase price of the land was 1,000,000 KD. The company paid the following costs after that on the land and the construction of the building: - - - - Attorney fees for land ownership transfer procedures 1,000 KD Purchasing commission to the real estate agent 2% of the purchasing price Ownership transfer taxes 5% of the purchasing price. Cost of landfilling and cleaning 10,000 KD Cost of demolishing and removing an old building was on the land 50,000 KD Proceeds from residual value of demolished building 15,000 KD Excavation cost for the new building 20,000 KD Architects' fees for design and supervision of the building construction 25,000 KD Payment for construction during 6-month 400,000 KD One-year insurance on construction 12,000KD Cost of parking lots and driveways 20,000 KD Cost of lightning for the parking lots and outside entrance and backyards 5,000 KD Cost of fences around the buildings and the parking lots 12,000 KD Required: 1. Calculate the cost of the land and building. 2. Journalize the required entry for the initial recognition. Q2. On the 10th of July 2023, ABC Company purchased land to construct a building to be used as a headquarters. The purchase price of the land was 1,000,000 KD. The company paid the following costs after that on the land and the construction of the building: - - - - Attorney fees for land ownership transfer procedures 1,000 KD Purchasing commission to the real estate agent 2% of the purchasing price Ownership transfer taxes 5% of the purchasing price. Cost of landfilling and cleaning 10,000 KD Cost of demolishing and removing an old building was on the land 50,000 KD Proceeds from residual value of demolished building 15,000 KD Excavation cost for the new building 20,000 KD Architects' fees for design and supervision of the building construction 25,000 KD Payment for construction during 6-month 400,000 KD One-year insurance on construction 12,000KD Cost of parking lots and driveways 20,000 KD Cost of lightning for the parking lots and outside entrance and backyards 5,000 KD Cost of fences around the buildings and the parking lots 12,000 KD Required: 1. Calculate the cost of the land and building. 2. Journalize the required entry for the initial recognition.
Expert Answer:
Answer rating: 100% (QA)
1 To calculate the cost of the land and building we need to sum up all the costs associated with the ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
The manager at SaskTires, a distributor of tires in Saskatchewan, uses a continuous review policy to manage inventory. The manager currently orders 10,000 tires when the inventory of tires drops to...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following questions are used in the Kaplan CPA Review Course to study property, plant, and equipment and intangible assets while preparing for the CPA examination. Determine the response that...
-
1. (9 pts) Consider a supply chain with a manufacturer and a retailer. The product is offered for a single season. Suppose the manufacturer produces at a cost of $30/unit. The manufacturer sells to...
-
Engineering estimates show that the variable cost of manufacturing a new product will be $35 per unit. Based on market research, the selling price of the product is to be $120 per unit and variable...
-
Your firm wants to know which ten countries are most prepared for e-commerce. A ranking of the level of e-readiness of various markets worldwide can be accessed by using the search term e-readiness...
-
Use Graph \(A\) and multigraphs \(B, C, D\), and \(E\) given in Figure 12.129 to answer the questions. 1. Which of the multigraphs are not eulerizations of Graph \(A\) ? Explain your answer. 2. Which...
-
Globex Investment Capital Corporation owns six companies that have the following estimated returns (in millions of dollars) if sold in one of the next 3 years: To operating funds, the company must...
-
1. You are calculating the risk of ABC stock in relation to the market index and you find ABCs beta is 2.25, the market indexs standard deviation is 22%, and the standard deviation of ABCs residual...
-
For the steel cantilevered beam shown, determine the minimum moment of inertia of the structural tee section, Imin, if the deflection at the free end is limited to 1 in. Given: L = 19.3 ft L = 6.6...
-
(1 point) Evaluate the limit, if it exists. If a limit does not exist, type "DNE". Limit: 4 4 lim y-0 + y y
-
Discuss the impact of digital twin technology on process modeling, and how it enables real-time monitoring, control, and optimization of industrial processes.
-
Your presentation must be between 10-13 minutes in duration. It is important to stick to this time as you will lose marks for going over or under the required time. Teams can choose to present on one...
-
Assume the forward contract is actually trading at Php4800, rather than the no-arbitrage price. In this situation, we reverse the arbitrage trades and make an arbitrage profit as follows. We are...
-
2x Consider the function f(x) = x-1 a) Does f(x) have symmetry? If so, what kind? b) Find the equations of any asymptotes. c) Find the critical numbers, and intervals of increase/decrease. d)...
-
eBook Show Me How Horizontal Analysis Two income statements for Satterfield Company are shown below. Satterfield Company Income Statements For the Years Ended December 31 20Y1 20YO Fees earned...
-
An educational researcher devised a wooden toy assembly project to test learning in 6-year-olds. The time in seconds to assemble the project was noted, and the toy was disassembled out of the childs...
-
Prepare adjusting entries for accruals and prepayments. - Accruals occur when revenues have been earned or expenses have been incurred but no cash has been received or paid. - The adjusting entry for...
-
CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT} After much consideration, Cam and Anna decide to organize their company as a corporation. On January 1, 2018, Front Row Entertainment Inc. begins...
-
Identify the types of transactions that may require adjustments at the end of an accounting period. - Many business activities do not occur at a single point in time but rather continuously over...
Study smarter with the SolutionInn App