ZuoTi.Pro
Question
Hi! Could you please help me with capitalizing the costs?
2 BUILDINGS Purchase Price Cost to Replace Roof Cost of New Heating and Plumbing Fixtures Government Permits Cost to Remove Graffitti from Walls During Refurbishment Brokerage Fees Cost of Legal Advice in the Purchase What amount should be debited to Building? $180,000 9,000 15,000 5,000 3,000 6,000 4,000
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Capitalized cost of building includes the following enses incurred for the preparation of plans, specifications, blueprint:s Architects and engineers fees for design and supervision Expenses incurred for permits, taxes, legal fee etc. So out of the expenses incurred as given in the question, Purchase price, Cost to replace roof, cost of new heating and plumbing fixtures, Payment for govemment permits, Brokerage fee, Legal advice fee to be included for capitalization of building which come to a total of (180000+9000+15000+5000+6000+4000)-$219,000/ Amount that should be debited to building is $219,000/ Note: cost incurred for removing Graffitti from walls during refurbishment - is part of renovation- Hence should not be included.

0 0
Add a comment
Know the answer?
Add Answer to:
Hi! Could you please help me with capitalizing the costs? 2 BUILDINGS Purchase Price Cost to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Can you help me from question 2 to question 10 please? TRANSACTIONS This should match the...

    Can you help me from question 2 to question 10 please? TRANSACTIONS This should match the last 5 digits of July $XX XXX of common shares in the new company are sold for cash. Purchased land and building, worth $120,000 and $240,000 respectively by borrowing all the funds from the bank on a long-term loan. Paid $10,800 for the premium on a one-year insurance policy effective today. Purchased $5,600 of office supplies for cash. Paid an employee $1,800 for two...

  • Can you do the year-end adjusting entries for the following: 1) Recognize rent revenue for the year. 2) Depreciation exp...

    Can you do the year-end adjusting entries for the following: 1) Recognize rent revenue for the year. 2) Depreciation expense for the year is 2,556,000. 3) Recognize the expiration of the prepaid insurance policy. 4) Recognize the interest earned on the note receivable issued. 5) Record bad debt expense for the year, assuming uses 2% of accounts receivable to estimate their uncollectible accounts. 6) Amortization Expense for the year is 3,000. Using this information: Transaction No. Transaction A January 1:...

  • The green box are the directions. please help with #1 and #2 . thanks! 7 Requirements:...

    The green box are the directions. please help with #1 and #2 . thanks! 7 Requirements: (See sheet tabs at bottom. Use each sheet for the following requirements.) 6 Use Excel Skills in completing these requirements. You must use formules and functions, cell references, and professional formatting 1. Prepare the Amazing Company multi-step income statement for the year ended December 31, 2019. Include the EPS at the bottom. 8 Also include a vertical analysis column at the right and perform...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT