Cost to be allocated to the building in accounting records

Assignment Help Financial Management

Reference no: EM131974559

1. A company purchased property for $100,000. The property included a building, equipment and land. The building was appraised at $62,000, the land at $45,000, and the equipment at $18,000 for a total appraised value of $125,000. What is the amount of cost to be allocated to the building in the accounting records?

$49,600

$62,000

$100,000

2. A company purchased office equipment for $24,500 and paid $1,470 in sales tax, $550 for installation, $3,200 for a needed adjustment to the equipment, and $2,600 for supplies that will be used for periodic routine maintenance. How should the company record this transaction?

Debit Equipment $24,500, debit Repairs and Maintenance Expense for $5,220, debit Supplies for $2,600, and credit Cash for $32,320

Debit Equipment for $29,720, debit Supplies for $2,600, and credit Cash for $32,320

Debit Equipment for $25,970, debit Repairs and Maintenance Expense $3,750, debit Supplies for $2,600, and credit Cash for $32,320

Debit Equipment and credit Cash for $32,320

Reference no: EM131974559

Questions Cloud

Compare and contrast task management and team management : Compare and contrast task management and team management. Include an example of each on how each management concept is best used.

Increase without pushing its current ratio : How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.0?

What will be company return on equity : Under these conditions, the tax rate will be 35%. If the changes are made, what will be the company's return on equity?

Create a performance evaluation for the job : This assignment marks the last part of the course project. You must now create a performance evaluation for the job you previously wrote a job description.

Cost to be allocated to the building in accounting records : What is the amount of cost to be allocated to the building in the accounting records?

Explain why dc did not use offshore resources : Explain why DC did not use offshore resources and evaluate whether the Agile method will work in a project with diverse workforce geographically and culturally.

Describe the various key roles of the reserve bank : Describe the various key roles of the Reserve Bank of Australia (RBA) as specified on their website.

Finances assets entirely with common stock : what is difference between CC's expected ROE if it finances these assets with 55% debt versus its expected ROE if it finances assets entirely with common stock?

Describe relationship between unemployment and real gdp : The working age population is 68,690 and the labour force participation rate is 73.6%. Use this information to find the following.

User Account

All Pages