Question

I NEED URGENT HELP PLEASE!!!

View Policies Current Attempt in Progress C&M Securities made several expenditures during the current fiscal year, including the following: For each of the items listed below, indicate whether the cost should be debited to land, buildings, equipment, land improvements, or an expense account Description of Amount Expenditure 1 $150,000 Acquisition of a piece of land to be used as a building site 2 3,000 Demolition of a small building on the land, to make way for the new building 3. 7,500 Levelling of the land to prepare it for construction of the new building 4. 290,000 Construction of the new building 5. 12,000 Paving of a parking lot beside the building 6. 6,000 Addition of decorative landscaping around the building (such as planting flowers and ornamental shrubs) 7. 80,000 Purchase of a new piece of equipment 8. 6,000 Sales taxes on the new equipment If non-recoverable If GST or HST 9. 3,000 Installation of the new equipment 1.500 Testing and adjustment of the new equipment prior to its use 11 1,000 Minor repairs to some old equipment 12 7,000 Major overhaul of an old piece of equipment extending its useful life by three years 13. 1,200 Routine maintenance of equipment 14. 2,000 Replacement of windows broken by disgruntled employees during a labour dispute 10.

Answer 1

a. 1. Land

2. Land

3. Land

4. Building

5. Land Improvements

6. Land Improvements (but may also be expensed)

7. Equipment

8. If non-recoverable – Equipment; if GST or HST – no effect on an asset or an expense account.

9. Equipment

10. Equipment

11. Expense

12. Equipment

13. Expense

14. Expense