Question 2 1 pts All of the following costs associated with a golf course would

Question

Question 2 1 pts All of the following costs associated with a golf course would be capitalized EXCEPT: O Paid a landscaping company to apply fertilizer to the fairways O Purchased a new fleet of golf carts to replace the old carts O Hired a contractor to build a 2,000 square foot addition on a clubhouse O Paid a landscaping company to clear 100 acres of the land to build a new course Question 3 1 pts Which of the following expenditures is a capital expenditure? O Paid $7,200 to paint the outside of the corporate office building O Paid annual real estate taxes of $14,260 O Paid $1,200 in sales tax on a new van when registering it at the Motor Vehicles office O Paid $1,500 to repair a new machine which was accidentally damaged during installation by a company employee Question 4 1 pts Bridge City Consulting bought a building and land on which it is located for $182,000 cash. The land was appraised at $143,500 and the building for $61,500. Which of the following statements is true regarding the journal entry to record this purchase. O Land will be debited for $127,400 O Building will be debited for $38,500 O Land will be debited for $143,500 O Building will be debited for $61,500

Explanation / Answer

Answer

2.A

Paid a landscaping company to apply fertilizer to the fairways on it Coyote Hills Golf Course.

It is a Expense.

3.D

Repair: expenditure for keeping the property in an ordinarily efficient operating condition.

A capital expenditure is an expenditure made to improve the property. Maintenance expenses, such as repainting or repairs, are not capital expenditures

4.

C & D both options are right

Land     dr                         143500

Building dr                          61500

                To,Cash                         182000

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