Purpose: (L.O. 2) This exercise will give you practice in identifying expenditures to be capitalized. Hughes Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Cash paid for land and dilapidated building thereon $ 300,000 Removal of old building $ 60,000 Less salvage 16,500 43,500 Surveying before construction to determine best position for building 1,110 Interest on short-term loans during construction 22,200 Excavation before construction for basement 57,000 Fee for title search charged by abstract company 1,560 Architect’s fees 8,400 Machinery purchased (subject to 2% cash discount, which was not taken) 165,000 Freight on machinery purchased 4,020 Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered on schedule 6,540 New building constructed (building construction took 8 months from date of purchase of land and old building) 1,500,000 Assessment by city for sewers (a one-time assessment) 4,800 Transportation charges for delivery of machinery from storage to new building 1,860 Installation of machinery 6,000 Trees, shrubs, and other landscaping after completion of building (permanent in nature) 16,200 Instructions (a) Identify the amounts that should be debited to Land. (b) Identify the amounts that should be debited to Buildings. (c) Identify the amounts that should be debited to Machinery and Equipment. (d) Indicate how the costs above not debited to Land, Buildings, or Machinery and Equipment should be recorded.
This question was answered on: Oct 15, 2019Buy this answer for only: $15
This attachment is locked
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Oct 15, 2019EXPERT
YES, THIS IS LEGAL
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.