Recording costs of assests L.O. C1 Carrier Manufacturing purchases a large lot o

Question

Recording costs of assests L.O. C1 Carrier Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $225,000 for the lot plus $120,000 for the old building. The company pays $34,500 to tear down the old building and $51,000 to fill an level the lot. It also pays a total of #1,440,000 in construction costs-this amount consists of $1,364,500 for the new building and $85,500 for lighting and paving a parking area next to the building. Prepare a single journal entry to record these costs incurred by Cerner, all of which are paid in cash. (Omit the "S" sign in your response.)

Explanation / Answer

SIMILAR QUESTION !! PLEASE RATE I WILL BE HELPFUL. Q)First question > Fisk Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $187,000 for the lot plus $82,000 for the old building. The company pays $31,900 to tear down the old building and $47,156 to fill and level the lot. It also pays a total of $1,455,734 in construction costs—this amount consists of $1,369,300 for the new building and $86,434 for lighting and paving a parking area next to the building.

Required:
Prepare a single journal entry to record these costs incurred by Fisk, all of which are paid in cash

second question > Rayya Co. purchases and installs a machine on January 1, 2009, at a total cost of $94,100. Straight-line depreciation is taken each year for four years assuming an 8-year life and no salvage value. The machine is disposed of on July 1, 2013, during its fifth year of service.

Requirement 1:
Prepare entry to record the partial year's depreciation on July 1, 2013

Requirement 2:
Prepare entry to record the disposal under the assumption that the machine is sold for $43,639 cash.

Requirement 3:
Prepare entry to record the disposal under the assumption that Rayya receives an insurance settlement of $39,522 resulting from the total destruction of the machine in a fire.

third question > Horizon Company owns a building that appears on its prior year-end balance sheet at its original $500,000 cost less $425,000 accumulated depreciation. The building is depreciated on a straight-line basis assuming a 20-year life and no salvage value. During the first week in January of the current calendar year, major structural repairs are completed on the building at a $59,893 cost. The repairs extend its useful life for 7 years beyond the 20 years originally estimated.

Requirement 1:
Determine the building's age (plant asset age) as of the prior year-end balance sheet date.


SIMILAR QUESTION !! PLEASE RATE I WILL BE HELPFUL. Q)First question > Fisk Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $187,000 for the lot plus $82,000 for the old building. The company pays $31,900 to tear down the old building and $47,156 to fill and level the lot. It also pays a total of $1,455,734 in construction costs—this amount consists of $1,369,300 for the new building and $86,434 for lighting and paving a parking area next to the building.

Required:
Prepare a single journal entry to record these costs incurred by Fisk, all of which are paid in cash

second question > Rayya Co. purchases and installs a machine on January 1, 2009, at a total cost of $94,100. Straight-line depreciation is taken each year for four years assuming an 8-year life and no salvage value. The machine is disposed of on July 1, 2013, during its fifth year of service.

Requirement 1:
Prepare entry to record the partial year's depreciation on July 1, 2013

Requirement 2:
Prepare entry to record the disposal under the assumption that the machine is sold for $43,639 cash.

Requirement 3:
Prepare entry to record the disposal under the assumption that Rayya receives an insurance settlement of $39,522 resulting from the total destruction of the machine in a fire.

third question > Horizon Company owns a building that appears on its prior year-end balance sheet at its original $500,000 cost less $425,000 accumulated depreciation. The building is depreciated on a straight-line basis assuming a 20-year life and no salvage value. During the first week in January of the current calendar year, major structural repairs are completed on the building at a $59,893 cost. The repairs extend its useful life for 7 years beyond the 20 years originally estimated.

Requirement 1:
Determine the building's age (plant asset age) as of the prior year-end balance sheet date.


SIMILAR QUESTION !! PLEASE RATE I WILL BE HELPFUL. Q)First question > Fisk Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $187,000 for the lot plus $82,000 for the old building. The company pays $31,900 to tear down the old building and $47,156 to fill and level the lot. It also pays a total of $1,455,734 in construction costs—this amount consists of $1,369,300 for the new building and $86,434 for lighting and paving a parking area next to the building.

Required:
Prepare a single journal entry to record these costs incurred by Fisk, all of which are paid in cash

second question > Rayya Co. purchases and installs a machine on January 1, 2009, at a total cost of $94,100. Straight-line depreciation is taken each year for four years assuming an 8-year life and no salvage value. The machine is disposed of on July 1, 2013, during its fifth year of service.

Requirement 1:
Prepare entry to record the partial year's depreciation on July 1, 2013

Requirement 2:
Prepare entry to record the disposal under the assumption that the machine is sold for $43,639 cash.

Requirement 3:
Prepare entry to record the disposal under the assumption that Rayya receives an insurance settlement of $39,522 resulting from the total destruction of the machine in a fire.

third question > Horizon Company owns a building that appears on its prior year-end balance sheet at its original $500,000 cost less $425,000 accumulated depreciation. The building is depreciated on a straight-line basis assuming a 20-year life and no salvage value. During the first week in January of the current calendar year, major structural repairs are completed on the building at a $59,893 cost. The repairs extend its useful life for 7 years beyond the 20 years originally estimated.

Requirement 1:
Determine the building's age (plant asset age) as of the prior year-end balance sheet date.


Best Answer Required:
Prepare a single journal entry to record these costs incurred by Fisk, all of which are paid in cash
Dr Land 348,056
Dr Building 1,369,300
Dr Land Improvements 86,434
Cr Cash 1,803,790
second question > Rayya Co. purchases and installs a machine on January 1, 2009, at a total cost of $94,100. Straight-line depreciation is taken each year for four years assuming an 8-year life and no salvage value. The machine is disposed of on July 1, 2013, during its fifth year of service.

Requirement 1:
Prepare entry to record the partial year's depreciation on July 1, 2013
94,100 / 8 = 11,762.50 depreciation per year
11,762.50 / 2 = 5,881.25 depreciation for one half year
Dr Depreciation Expense--Machine 5,881.25
Cr Accumulated Depreciation--Machine 5,881.25


Requirement 2:
Prepare entry to record the disposal under the assumption that the machine is sold for $43,639 cash.
(4 x 11,762.50) + 5,881.25 = 52,931.25 Accum Depr
Dr Cash 43,639
Dr Accumulated Depreciation--Machine 52,931.25
Cr Gain on Disposal 2,470.25
Cr Machine 94,100

Requirement 3:
Prepare entry to record the disposal under the assumption that Rayya receives an insurance settlement of $39,522 resulting from the total destruction of the machine in a fire.
Dr Cash 39,522
Dr Accumulated Depreciation--Machine 52,931.25
Dr Loss on Disposal 1,646.75
Cr Machine 94,100

third question > Horizon Company owns a building that appears on its prior year-end balance sheet at its original $500,000 cost less $425,000 accumulated depreciation. The building is depreciated on a straight-line basis assuming a 20-year life and no salvage value. During the first week in January of the current calendar year, major structural repairs are completed on the building at a $59,893 cost. The repairs extend its useful life for 7 years beyond the 20 years originally estimated.

Requirement 1:
Determine the building's age (plant asset age) as of the prior year-end balance sheet date.
500,000 / 20 = 25,000 depreciation per year
425,000 / 25,000 = 17 years Best Answer Required:
Prepare a single journal entry to record these costs incurred by Fisk, all of which are paid in cash
Dr Land 348,056
Dr Building 1,369,300
Dr Land Improvements 86,434
Cr Cash 1,803,790
second question > Rayya Co. purchases and installs a machine on January 1, 2009, at a total cost of $94,100. Straight-line depreciation is taken each year for four years assuming an 8-year life and no salvage value. The machine is disposed of on July 1, 2013, during its fifth year of service.

Requirement 1:
Prepare entry to record the partial year's depreciation on July 1, 2013
94,100 / 8 = 11,762.50 depreciation per year
11,762.50 / 2 = 5,881.25 depreciation for one half year
Dr Depreciation Expense--Machine 5,881.25
Cr Accumulated Depreciation--Machine 5,881.25


Requirement 2:
Prepare entry to record the disposal under the assumption that the machine is sold for $43,639 cash.
(4 x 11,762.50) + 5,881.25 = 52,931.25 Accum Depr
Dr Cash 43,639
Dr Accumulated Depreciation--Machine 52,931.25
Cr Gain on Disposal 2,470.25
Cr Machine 94,100

Requirement 3:
Prepare entry to record the disposal under the assumption that Rayya receives an insurance settlement of $39,522 resulting from the total destruction of the machine in a fire.
Dr Cash 39,522
Dr Accumulated Depreciation--Machine 52,931.25
Dr Loss on Disposal 1,646.75
Cr Machine 94,100

third question > Horizon Company owns a building that appears on its prior year-end balance sheet at its original $500,000 cost less $425,000 accumulated depreciation. The building is depreciated on a straight-line basis assuming a 20-year life and no salvage value. During the first week in January of the current calendar year, major structural repairs are completed on the building at a $59,893 cost. The repairs extend its useful life for 7 years beyond the 20 years originally estimated.

Requirement 1:
Determine the building's age (plant asset age) as of the prior year-end balance sheet date.
500,000 / 20 = 25,000 depreciation per year
425,000 / 25,000 = 17 years Required:
Prepare a single journal entry to record these costs incurred by Fisk, all of which are paid in cash
Dr Land 348,056
Dr Building 1,369,300
Dr Land Improvements 86,434
Cr Cash 1,803,790
second question > Rayya Co. purchases and installs a machine on January 1, 2009, at a total cost of $94,100. Straight-line depreciation is taken each year for four years assuming an 8-year life and no salvage value. The machine is disposed of on July 1, 2013, during its fifth year of service.

Requirement 1:
Prepare entry to record the partial year's depreciation on July 1, 2013
94,100 / 8 = 11,762.50 depreciation per year
11,762.50 / 2 = 5,881.25 depreciation for one half year
Dr Depreciation Expense--Machine 5,881.25
Cr Accumulated Depreciation--Machine 5,881.25


Requirement 2:
Prepare entry to record the disposal under the assumption that the machine is sold for $43,639 cash.
(4 x 11,762.50) + 5,881.25 = 52,931.25 Accum Depr
Dr Cash 43,639
Dr Accumulated Depreciation--Machine 52,931.25
Cr Gain on Disposal 2,470.25
Cr Machine 94,100

Requirement 3:
Prepare entry to record the disposal under the assumption that Rayya receives an insurance settlement of $39,522 resulting from the total destruction of the machine in a fire.
Dr Cash 39,522
Dr Accumulated Depreciation--Machine 52,931.25
Dr Loss on Disposal 1,646.75
Cr Machine 94,100

third question > Horizon Company owns a building that appears on its prior year-end balance sheet at its original $500,000 cost less $425,000 accumulated depreciation. The building is depreciated on a straight-line basis assuming a 20-year life and no salvage value. During the first week in January of the current calendar year, major structural repairs are completed on the building at a $59,893 cost. The repairs extend its useful life for 7 years beyond the 20 years originally estimated.

Requirement 1:
Determine the building's age (plant asset age) as of the prior year-end balance sheet date.
500,000 / 20 = 25,000 depreciation per year
425,000 / 25,000 = 17 years

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