Question 1 House Builders of Canada decided to expand its facilities and upgrade some of its log preparation equipment. The following events occurred during the year: Date Jan. 2 6 11 15 17 20 22 25 Amount Description of Expenditure $76,700 Purchased land adjacent to the company's existing property, to be used for the expansion. 1,200 Paid legal fees and deed registration fees. 3,800 Paid its workers to clear the land on their days off. 125,000 Purchased equipment, which was delivered but not yet paid for. 900 Purchased building permit for construction of the addition. 2,400 Constructed temporary fencing as required by the building permit to enclose the construction site. Upon completion of the addition to the building, the fencing was to be removed. 409,000 Started construction of a new addition to the main building, which is estimated to cost $409,000. 3,700 Received bill for delivery of the equipment that was received on January 15. Paid the amounts owing on the equipment and its delivery. 10,900 Paid architect's fees for designing the building addition and supervising its construction. 378,000 Paid full amount to the construction company upon completion of the building. 700 Paid cost to remove temporary fencing. 2,800 Paid work crews to install the equipment. 1,200 Paid for party to celebrate the successful completion of the expansion. 800 Paid for set-up and adjustment of the new equipment so it would be ready to use. 800 Paid for an ad in the local paper to advertise that the company was hiring. Feb. 1 28 May 9 11 14 24 June 7 10 800 (a) Determine the costs that should be capitalized as assets by Home Builders of Canada in its land, buildings, and equipment accounts. Land Building Equipment Date Jan. 2. Cost capitalized as assets Yes 76700 Jan. 6 Yes 1200 Jan. 11 Yes 3800 Jan. 15 Yes 125000 Jan. 17 Yes 900 Jan. 20 Yes 2400 Jan. 22 Yes 409000 Jan. 25 Yes 3700 Feb. 1 No Feb. 28 Yes 10900 May 9 Yes 378000 May 11 Yes 900 May 14 Yes 2800 May 24 No June 7 Yes 800 June 10 No