requirement 1

requirement 2

requirement 3

Current Attempt in Progress The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) (b) Payment for construction from note proceeds (c) Cost of land fill and clearing (d) Delinquent real estate taxes on property assumed by purchaser (e) Premium on 6-month insurance policy during construction (f) Refund of 1 -month insurance premium because construction completed early (g) Architect's fee on building $(276,900) 276,900 10,340 7,530 10,980 (1,830) 27,670 (h) Cost of real estate purchased as a plant site (land $210,000 and building $53,700) 263,700 (i) Commission fee paid to real estate agency 9.820 (i) Installation of fences around property 4,140 (k) Cost of razing and removing building 12,060 (I) Proceeds from salvage of demolished building (m) Interest paid during construction on money borrowed for construction (4,550) (n) Cost of parking lots and driveways 11,970 (o) Cost of trees and shrubbery planted (permanent in nature) 20,700 13,790 (p) Excavation costs for new building 3,300 Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title. (Enter receipt amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45). If no entry is required in other accounts, select "No Entry" for the account titles.) Waterway Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. 1. Truck \#1 has a list price of $51,150 and is acquired for a cash payment of $47,399. 2. Truck #2 has a list price of $54,560 and is acquired for a down payment of $6,820 cash and a zerointerest-bearing note with a face amount of $47,740. The note is due April 1,2021 . Waterway would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has an incremental borrowing rate of 8%. 3. Truck \#3 has a list price of $54,560. It is acquired in exchange for a computer system that Waterway carries in inventory. The computer system cost $40,920 and is normally sold by Waterway for $51,832. Waterway uses a perpetual inventory system. 4. Truck #4 has a list price of $47,740. It is acquired in exchange for 920 shares of common stock in Waterway Corporation. The stock has a par value per share of $10 and a market price of $13 per share. Prepare the appropriate journal entries for the above transactions for Waterway Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Compute the total cost to be capitalized for each of these two pieces of equipment. Purchase equipment Construction equipment $