Barney Stinson purchased land and a building for his new men’s clothing store. The price paid was $700,000. The appraised or fair value of the land was $200,000 while the fair value of the building was $600,000. What is the historical cost of the building?
Q: Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the…
A: The question says that the company produces two products (which are not interlinked). The…
Q: On January 15, Ross Furniture, Inc, accepts a $5,000, 180-day, 10 percent note from a customer at…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Find the denreciation amount in the second year using either 150% or 200%
A: Answer:
Q: January 3 Purchased equipment for $55000, paying $45000 in cash and signing a 10000, 4-month, 10 %…
A: The Accounting cycle is completed, being starting from identification of financial transactions to…
Q: The total liabilities of ABC Company for the period ending December 31, 2021 amounted to P300,000.…
A: Note: Accrued interest income and Unused office supplies are not liabilities. These balances should…
Q: Sarasota Corp. reported net sales S 600,000, cost of goods sold $ 336,000, operating expenses $…
A: Lets understand the basics. There are three type of margins are there, (1) Gross profit margin ratio…
Q: T year and provid
A: Personal loan= $50, 000, Interest rate= 2.5% pa.
Q: The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just been…
A: Balance Sheet includes: Assets accounts Liabilities accounts Equity accounts As per accounting…
Q: Luebke Incorporated has provided the following data for the month of November. The balance in the…
A: When manufacturing overheads are applied to the products at predetermined rates then overapplied or…
Q: Which of the following is included under the financing activities in O Payment of salaries to…
A: Solution: Financing activities are those activities which includes transactions related to sources…
Q: Luebke Incorporated has provided the following data for the month of November. The balance in the…
A: The cost of goods sold refers to the direct costs of manufacturing the commodities supplied by a…
Q: Journalize the transactions shown below in the two-column general journal that follows. Calculate…
A: Answer:
Q: A. Calculate the differential Cost ol ACme? B. Should Almond Treats make or buy the almond cereal?
A: This whole question is based on the concept Relevant cost What is Relevant cost? In simple words,…
Q: The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False…
A: Transfer price is a price at which a transaction of two related divisions of the same corporation…
Q: ssume the following information: Milling Department Materials Conversion Total Cost of beginning…
A: The term "work in process" refers to the product that is in the process of being created but has not…
Q: The following are the selected ledger balances taken from the books of ABC Company for the year…
A: Current assets: Current assets are all those assets that are expected to be sold or used as a result…
Q: Chapter3 PROBLEMS The following information is extracted from the general ledger of Super Massage…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: On October 01, 2019, Benny and Joey pooled their resources in a partnership with the firm taking…
A: Assets = Liabilities + Capital Adjustments made in Joey's assets: Balance - inventory - Allowance…
Q: nny borrowed $546
A: The Fringe Benefit Tax (FBT) is a tax that an employer must pay in lieu of compensation provided to…
Q: Explain the concept of situs of taxation? Give examples
A: Governments in practically every country throughout the world levy forced charges on persons or…
Q: Consider the following situations and determine (1) which type of liability should be recognized…
A: Liability: Liability is an obligation of a company towards the lending party. They can be short term…
Q: On January 02, 2019, the business assets and liabilities of Gail Anne & Precious were as…
A: Capital = Assets-Liabilities
Q: Expenditures—Operating—Salaries..........................................…
A: Salaries payable is the amount which is due to the employees but not yet paid.
Q: Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the…
A: An equivalent unit of production is an expression of the work done by a manufacturer on partially…
Q: GENERAL JOURNAL PAGE 1 PARTICULARS DATE 20- Mar. P.R. DEBIT CREDIT 31 Bank 4. 1000 2 0 0 2 00 A/RJim…
A: The financial statements of the business includes the income statement and balance sheet of the firm…
Q: Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the…
A: The contribution per unit and number of minutes to produce the products are different for the two…
Q: to reflect the fact that DD could no longer devote any time to the store’s operations. The new…
A: partnership is considered we one of the most easiest way of doing business which involved agreement…
Q: Scenario: The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just…
A: Cash Flow Statement - Cash Flow Statement show the movement of cash during the financial year. The…
Q: Dar and Ling share in the partnership’s profit in the ratio of 2:1 respectively. Dar received…
A: Amount receive by Ling as his share = Total amount paid x Ling share where, Total amount paid = Dar…
Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of…
A: Formula: Times interest ratio = Operating income / Interest expense
Q: Problem 6 Epoch Record Company is negotiating with two banks for a P100,000 loan. Trust Bank…
A: Effective Rate of Interest- After taking into account the compounding element, the effective rate of…
Q: Assume the following: Purchases of raw materials $ 38,000 Indirect materials used in production $…
A: Direct materials are the materials or resources used in the production of a product that are…
Q: Q.No. 2 Abuhatim LLC has given the following particulars. You are required to prepare a cash budget…
A: cash budget: The cash budget refers to the projection of cash movement of a business over a specific…
Q: On February 3, the billing date, Carol Ann Bluesky had a balance due of $128.66 on her credit card.…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: Mary and Natalle have been trading for many years sharing profits equally. On 1 January 2020 Mary…
A: Given That : Mary and Natalie were partners and sharing profits equally . But on 1 January 2020 Mary…
Q: Problem 11-3 Twin City Enterprises had the following information available for the payroll of May…
A: Payroll taxes: The tax obligations imposed on the payroll remuneration earned by an employee while…
Q: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquis-…
A: The contribution margin can be stated on a gross or per-unit basis. It shows the additional money…
Q: For each of the following expenditures, indicate the type of account (asset or expense) in which the…
A: An asset represents any source of future economic benefit to the firm that goes beyond one year,…
Q: The following additional information relates to GGG Company: December 31, 2021 December 31, 2020…
A: Value of Equipment Purchased during the year = Ending Balance of Equipment + Gross Value of…
Q: The following partially completed T-accounts summarize transactions for Faaberg Corporation during…
A: Direct material cost is the amount of raw material which can be directly identified with the units…
Q: MM, NN and OO are partners with Capital balances on December 31, 2021 of 300,000, 300,000 and…
A: (1). Computation of OO’s acquisition of the second hand equipment that will result in the reduction…
Q: ansactions pertaining to Cash were taken from the books of ABC Company for the year 2021:…
A: Cash flows from Operating activities includes all those cash transactions which flows from…
Q: Prepare the cash budget with the projected income statement of ABC Company from March to June
A: Cost of Goods Sold = 100000 Gross Profit = 20% Based on Sales Sales = 20% i.e 1/5 on Sales i.e. 1/4…
Q: In 2021, Jasmine and Thomas, a married couple, had taxable income of $150,000. If they were to file…
A: In this question, We will find out couple's marriage penalty and benefits.
Q: Use the following to answer questions 19 – 24 The following balance sheet items, listed in…
A: Solution Total assets is the assets which include both current assets and non current assets .
Q: Use the following to answer questions 19 – 24 The following balance sheet items, listed in…
A: Calculation of Total Liabilities Amount Accounts Payable $ 25,000 Bonds…
Q: The transactions pertaining to Cash were taken from the books of ABC Company for the year 2021:…
A: Cash Flow from Operating Activities - This activity is part of the cash flow statement. It includes…
Q: b. Determine the charges to the COMM sector for the four cCS service categories for October. Round…
A: a) CCS Service Category Activity Base Budgeted cost Base qty Service Charge Rate…
Q: Bacalso and tenajeros have respective partnership capital balances of 48,000 and 24,000 on Jan 1.…
A: Average capital balances = (Beginning capital balances + ending capital balances ) / 2
Q: Fixed Cost per Month Cost per Cruise Cost per Passenger Vessel operating costs $ 6,400 $ 478.00 $…
A: Flexible budget is the budget prepared by the management which represents the budgeted costs at…
Barney Stinson purchased land and a building for his new men’s clothing store. The price
paid was $700,000. The appraised or fair value of the land was $200,000 while the fair value
of the building was $600,000. What is the historical cost of the building?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- A company purchased land for $96800 cash. The real estate brokers' commission was $3700 and $7500 was spent for demolishing an old building on the land before construction of a new building could start. Proceeds from salvage of the demolished building were $1200. Under the historical cost principle, the cost of land is $108000. $106800. $103100. $96800.A company purchased a track of land with the intent to use the land to put a new building. However, an old building is sitting where the new building is to be constructed, and the old building must be removed at a cost of $10,000. Should the cost of removing the old building be part of the cost of the building or be part of the cost of the land? Please explain:Wellsley Corporation purchased an old building and the land on which it is located for $70,000. The old building was demolished at a cost of $20,500. The new building that was built on the site cost $250,000. Wellsley also incurred the following costs: closing fees including commissions of $4,500, and title insurance costing $3,000. What is the correct amount to capitalize for the Land? a) $70,000 Ob) $90,500 c) $320,000 d) $98,000 e) $418,000
- Fresh Veggies, Incorporated (FVI), purchases land and a warehouse for $490,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker's commission, $29,000; title insurance, $1,900; and miscellaneous closing costs, $6,000. The warehouse is immediately demolished at a cost of $29,000 in anticipation of building a new warehouse. Determine the cost of the land and record the purchase (assuming cash was paid for all expenditures). (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of the land. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general JournalBeaverton Lumber purchased a milling machine for $35,000. In addition to the purchase price, Beaverton made the following expenditures: freight, $1,500; installation, $3,000; testing, $2,000; personal property tax on the machine for the first year, $500. What is the initial cost of the machine?Larkspur Corporation donates equipment and a truck to the community Home Assistance Centre. The equipment had a cost of $98,000, accumulated depreciation to the contribution date of $41,000, and a fair value of $50,000. The truck had a cost of $49,000, accumulated depreciation to the contribution date of $41,000, and a fair value of $27,000. Prepare the journal entry Larkspur Corporation would make for the donation. (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 O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
- A company purchased land for $350000 cash. The real estate brokers' commission was $15000 and $61000 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land is $350000. $365000. $426000. $411000.Glenwood Industrial Gear, Inc. incurred the following costs associated with the purchase of a piece of land that it will use to build a retail store: Purchase price of the land $450,000 Cash received from Sale of salvaged parts already on land $20,000 Current year property taxes $3,400 Demolition of the old building $30,000 Ground breaking ceremony (food and supplies) $3,500 Back Property Taxes $14,700 Land preparation and leveling $17,500 What amount should Glenwood Industrial Gear, Inc. capitalize for the land asset? Group of answer choicesFresh Veggies, Inc. (FVI), purchases land and a warehouse for $490,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker’s commission, $29,000; title insurance, $1,900; and miscellaneous closing costs, $6,000. The warehouse is immediately demolished at a cost of $29,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land.
- Determining the Cost of an AssetOmar Corporation paid $300,000 for a tract of land that had an old gas station on it. The gas station was demolished at a cost of $20,000 and a new warehouse was constructed on the site at a cost of $550,000. In addition, several other costs were incurred: Legal fees (associated with the purchase of the land) $45,000 Architect fees (associated with the new warehouse) $50,000 Interest on the construction loan (for the new warehouse) $24,000 What value should be assigned to the tract of land? $Answer What value should be assigned to the new warehouse? $AnswerBedox during the year purchased a coal mine for 2,000,000. It cost 500,000 to prepare the coal mine for the extraction of the coal. It was estimated that 750,000 tons of coal would be extracted from the mine during its useful life.. Bedox planned to sell the property for the amount of 100,000 at the end of its useful life. During the current year, 15,000 tons of coal were extracted and sold. What will be the depletion amount per ton for the current year?Company x bought a house and lot for $1,500,000. The value of the land was appraised at $900,000 and the house valued at $600,000, transactional property sales taxes of 20% apply. The company then demolished the house and cleared the lot at an additional cost of $50,000 and built a commercial tower at a cost of $2,000,000. What is the cost basis of the Commercial tower?