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A company is planning a new development. In the first quarter, they spent the following amounts: Purchase land $90,000 Surveys and legal fees 1,200 Land clearing 4,600 Install fences around the property 5,000 Install lighting and signage 2,600 What amount should be recorded as the cost of the land improvements? $ $5,000 $2,600 O $12,200 $7,600 A company made a lump-sum purchase of land, buildings, and equipment for $630,000. The appraised market values for the items are respectively, $322,000, $168,000, and $210,000. The company should debit the equipment account for: $289,800 $189,000. $151,200. $168,000 Incorrectly treating a repair expenditure as a betterment: understates expenses and understates assets. overstates expenses and understates net income. understates expenses and understates owner's equity. overstates assets and overstates owner's equity. The current debit balance in allowance for doubtful accounts is $300. Management estimates that 4% of net credit sales of $100,000 will be uncollectible. Based on the foregoing data, what is the bad-debt expense balance on the income statement? $3,700 $4,000 $4,150 $4,300 A bookkeeper mistakenly recorded a collection of $358 on a customer account as $385 in the accounting system. The journal entry required to correct this error would be: debit Cash, $27; credit Accounts Receivable, $27 debit Cash, $385; credit Accounts Receivable, $385 debit Accounts Receivable, $358; credit Cash, $358 debit Accounts Receivable, $27; credit Cash, $27 debit Accounts Receivable, $385; credit Cash, $385

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