Question

SASA Company made the following expenditures in connection with the construction of its new soccer facility:

Architect’s fees	$ 8,000
Cash paid for land and old building	130,000
Removal of old building	19,000
Survey to site the new building	6,000
Excavation for construction of basement	1,500
Machinery purchased	71,000
Storage charges on machinery because building was not ready when machinery was delivered	500
Freight on machinery purchased	1,500
Hauling charges to deliver machinery from         storage to new building	500
Construction costs of new building	612,000
Landscaping	6,500
Installation of machinery	8,500

REQUIRED:

Prepare a schedule showing the amounts to be recorded as Land, Building, Machinery and Equipment, and Expenses.

Answer 1

Schedule Showing amount recorded as Land , Building , Machinery - SASA Company
Particular	Land	Building	Machinery
Architects Fee		$8,000.00
Cash Paid For Land and old Building	$130,000.00
Removal Of Old Building	$19,000.00
Survey to Site The New Building		$6,000.00
Excavation for Construction of Basement		$1,500.00
Machinery Purchased			$71,000.00
Storage Charges On Machinery			$500.00
Fright On Machinery Purchased			$1,500.00
Hauling Charges To Delivery Machine			$500.00
Construction Costs Of New Building		$612,000.00
Landscaping	$6,500.00
Installation Of Machinery			$8,500.00
Total Capitalization	$155,500.00	$627,500.00	$82,000.00