Asked by Allison Mcintee on May 23, 2024
Verified
Identify each of the following expenditures as chargeable to (a) Land, (b) Land Improvements, (c) Buildings, (d) Machinery and Equipment, or (e) other account.(1)Cost of paving parking area for employees and customers
(2)Insurance during construction of building
(3)Interest incurred on loan during construction of building
(4)Fee paid for installation of equipment
(5)Special foundation for new equipment acquired
(6)Insurance on new equipment while in transit
(7)Freight charges on new equipment
(8)Cost of repairing vandalism damage to equipment during installation
(9)Sales tax on new equipment
(10)Cost incurred in repairing damage resulting from installation of new equipment
(11)Cost of land fill for building site
(12)Cost of lubricating oil purchased for periodic oil changes for equipment
(13)Parking lot lighting
(14)Installing a fence around the parking lot
(15)Repainting the trim on a building
(16)Special assessment paid to city for extension of water main to property
(17)Cost of razing and removing the old building on property acquired for a building site
(18)Delinquent real estate taxes assumed by purchaser on property acquired for a building site
(19)Attorney's fee for title search
(20)Architect's fee for building plans and supervision of construction
Land Improvements
Enhancements made to land such as landscaping, fencing, and lighting that increase its value, excluding the cost of the land itself.
Buildings
Physical structures owned or used by a business for its operations, considered as a fixed asset on the balance sheet.
Machinery and Equipment
Long-term assets used in the operation of a business, typically for manufacturing, processing, or office operations.
- Comprehend and distinguish the different expenses related to long-term assets.
- Examine and document costs related to the acquisition and enhancement of long-term properties.
- Compute the expense of acquiring and enhancing land and buildings.
Verified Answer
SM
Sesethu MdladlambaMay 28, 2024
Final Answer :
(a)11, 16, 17, 18, 19
(b)1, 13, 14
(c)2, 3, 20
(d)4, 5, 6, 7, 9
(e)8, 10, 12, 15
(b)1, 13, 14
(c)2, 3, 20
(d)4, 5, 6, 7, 9
(e)8, 10, 12, 15
Learning Objectives
- Comprehend and distinguish the different expenses related to long-term assets.
- Examine and document costs related to the acquisition and enhancement of long-term properties.
- Compute the expense of acquiring and enhancing land and buildings.