Stanley Corp. incurred the following costs to accquire land, make land improvements, construct a Warehouse and purchase equipment to start operating its sporting goods business. Line
1 Cost of land 300,000
2 Attorney’s fee, land acquisition 15,000
3 Architect’s fee, building design 35,000
4 Accrued Taxes on Land 2,500
5 Construction cost of Building 975,000
6 Annual Salary of staff who supervised the construction of the building for six months 80,000
7 Interest charges on loan for building paid during construction 5,500
8 Closing costs on purchase of land (Title Insurance, Title search) 22,000
9 Construction of Parking lot and sidewalk 55,000
10 Interest paid after completion of building construction 15,675
11 Cost of Electrical wiring, building 60,000
12 Cost of Landscaping 25,000
13 Installation cost of sprinkler system 6,500
14 Cost of surveying land 5,600
15 Purchase of Plant Equipment 150,000
16 Delivery and freight charges, Plant Equipment 5,500
17 Installation cost of Plant Equipment 8,000
18 Testing and Training costs (Prior to use of Plant Equipmment) 6,000
19 Cost of grading the land 9,000
20 Proceeds from sale of Scrap Materials on the land (6,000)
21 Cost of Partitioning of warehouse 15,555
22 Purchase of Delivery truck 75,000
23 Delivery and freight charges - Truck 6,000
24 Freight Insurance - Truck 2,000
25 Motor Vehicle registration and licensing fees - Truck 1,200
26 Prepaid insurance – one year for Truck 2,500
27 Cost of Painting and Lettering of Delivery Truck 7,500
Total account balance $ 1,885,030
Match each Line number to the appropriate asset or expense account -
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A. |
Land |
B. |
Expense |
C. |
Land Improvement |
D. |
Delivery Truck |
E. |
Building |
F. |
Plant Equipment |
Answer:
1 Cost of land 300,000 = Land
2 Attorney’s fee, land acquisition 15,000 =Land
3 Architect’s fee, building design 35,000 =Land Improvment
4 Accrued Taxes on Land 2,500 =Expensses
5 Construction cost of Building 975,000 =Building
6 Annual Salary of staff who supervised the construction of the building for six months 80,000 =Expenses
7 Interest charges on loan for building paid during construction 5,500 =Building
8 Closing costs on purchase of land (Title Insurance, Title search) 22,000 =Plant Equipment
9 Construction of Parking lot and sidewalk 55,000 = Land Imorovment
10 Interest paid after completion of building construction 15,675 =EXPENSES
11 Cost of Electrical wiring, building 60,000 =Building
12 Cost of Landscaping 25,000 =Land
13 Installation cost of sprinkler system 6,500 =Expenses
14 Cost of surveying land 5,600 =Expenses
15 Purchase of Plant Equipment 150,000 =Plant Equipment
16 Delivery and freight charges, Plant Equipment 5,500 =Expenses
17 Installation cost of Plant Equipment 8,000 =Plant Equipment
18 Testing and Training costs (Prior to use of Plant Equipmment) 6,000 =Expenses
19 Cost of grading the land 9,000 =LAnd Improvment
20 Proceeds from sale of Scrap Materials on the land (6,000) =Income
21 Cost of Partitioning of warehouse 15,555 =Expenses
22 Purchase of Delivery truck 75,000 =Delivery Truck (Assets)
23 Delivery and freight charges - Truck 6,000 =Expenses
24 Freight Insurance - Truck 2,000 =Expenses
25 Motor Vehicle registration and licensing fees - Truck 1,200 =Delivery Truck( Assets)
26 Prepaid insurance – one year for Truck 2,500 =Expenses
27 Cost of Painting and Lettering of Delivery Truck 7,500 =Expenses
Stanley Corp. incurred the following costs to accquire land, make land improvements, construct a Warehouse and...
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