Skysong Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to...
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Skysong Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment.
Abstract companys fee for title search
$598
Architects fees
3,646
Cash paid for land and dilapidated building thereon
100,050
Removal of old building
$23,000
Less: Salvage
6,325
16,675
Interest on short-term loans during construction
8,510
Excavation before construction for basement
21,850
Machinery purchased (subject to 2% cash discount, which was not taken)
63,250
Freight on machinery purchased
1,541
Storage charges on machinery, necessitated by noncompletion of
building when machinery was delivered
2,507
New building constructed (building construction took 6 months from
date of purchase of land and old building)
557,750
Assessment by city for drainage project
1,840
Hauling charges for delivery of machinery from storage to new building
713
Installation of machinery
2,300
Trees, shrubs, and other landscaping after completion of building
(permanent in nature)
6,210
Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. Company uses net method to record discount. (Please leave spaces blank if there is no answer. Do not enter zeros in those spaces.)
Land
Buildings
Machinery and Equipment
Other
Abstract companys fee for title search
$
$
$
$
Architects fees
Cash paid for land and old building
Removal of old building
Interest on short-term loans during construction
Excavation before construction for basement
Machinery purchased
Freight on machinery purchased
Storage charges on machinery
$
$
$
$
New building constructed
Assessment by city for drainage project
Hauling charges
Installation of machinery
Trees, shrubs, and other landscaping
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