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  • Acquisition and Disposition of Property, Plant, and Equipment

    BE10.14 (LO 5) Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $8,400 at December 31, 2020. The machinery is sold on September 1, 2021, for $10,500. Prepare journal entries to (a) update depreciation for 2021 and...

  • Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a...

    Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land, building, and equipment for the factory: (FV of $1, P of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables...

  • Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a...

    Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land, building, and equipment for the factory: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables...

  • Problem 10-5 On January 1, 2020, Sheridan Corporation purchased for $680,000 a tract of land (site...

    Problem 10-5 On January 1, 2020, Sheridan Corporation purchased for $680,000 a tract of land (site number 101) with a building. Sheridan paid a real estate broker’s commission of $48,960, legal fees of $8,160, and title guarantee insurance of $24,480. The closing statement indicated that the land value was $680,000 and the building value was $136,000. Shortly after acquisition, the...

  • (Cost of Land vs. Building—Ethics) Tones Company purchased a warehouse in a downtown district where land...

    (Cost of Land vs. Building—Ethics) Tones Company purchased a warehouse in a downtown district where land values are rapidly increasing. Gerald Carter, controller, and Wilma Ankara, financial vice president, are trying to allocate the cost of the purchase between the land and the building. Noting that depreciation can be taken only on the building, Carter favors placing a very high...

  • On March 1, 2019, Cullumber Company acquired real estate on which it planned to construct a...

    On March 1, 2019, Cullumber Company acquired real estate on which it planned to construct a small office building. The company paid $75,000 in cash. An old warehouse on the property was razed at a cost of $8,000; the salvaged materials were sold for $1,500. Additional expenditures before construction began included $1,000 attorney’s fee for work concerning the land purchase,...

  • On March 1, 2017, Blossom Company acquired real estate, on which it planned to construct a...

    On March 1, 2017, Blossom Company acquired real estate, on which it planned to construct a small office building, by paying $75,000 in cash. An old warehouse on the property was demolished at a cost of $7,200; the salvaged materials were sold for $1,500. Additional expenditures before construction began included $1,000 attorney's fee for work concerning the land purchase, $4,000...

  • Presented below is a schedule of property dispositions for Hollerith Co. Schedule of Property Dispositions Cost...

    Presented below is a schedule of property dispositions for Hollerith Co. Schedule of Property Dispositions Cost Accumulated Depreciation Cash Proceeds Fair Value Nature of Disposition Land $40,000 — $31,000 $31,000 Condemnation Building 15,000 — 3,600 — Demolition Warehouse 70,000 $16,000 74,000 74,000 Destruction by fire Machine 8,000 2,800 900 7,200 Trade-in Furniture 10,000 7,850 — 3,100 Contribution Automobile 9,000 3,460...

  • second photo is to show the options for the account titles Exercise 216 Kendrick Company was...

    second photo is to show the options for the account titles Exercise 216 Kendrick Company was organized on January 1. During the first year of operations, the following expenditures and receipts were recorded in random order. 10.000 4.000 10,000 30,000 5,000 6,000 Increases 1. Cost of real estate purchased as a plant site (land and building) 2. Accrued real estate...

  • Exercise 10-1 Acquisition costs; land and building [LO10-1] On March 1, 2018, Beldon Corporation purchased land...

    Exercise 10-1 Acquisition costs; land and building [LO10-1] On March 1, 2018, Beldon Corporation purchased land as a factory site for $73,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2018. Costs incurred during this period are listed below: Demolition of old building $ 5,500 Architect’s fees...

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