Reference no: EM13999258
On January 1, 2011, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $600,000. Additionally, Blackstone paid a real estate broker's commission of $36,000, legal fees of $6,000, and title insurance of $18,000. The closing statement indicated that the land value was $500,000 and the building value was $100,000. Shortly after acquisition, the building was razed at a cost of $75,000.
Blackstone entered into a $3,000,000 fixed-price contract with Barnett Builders, Inc., on March 1, 2011, for the construction of an office building on land site 11. The building was completed and occupied on September 30, 2012. Additional construction costs were incurred as follows:
Plans, specifications, and blueprints .....$12,000
Architects' fees for design and supervision ..$ 95,000
To finance the construction cost, Blackstone borrowed $3,000,000 on March 1, 2011. The loan is payable in 10 annual installments of $300,000 plus interest at the rate of 14%. Blackstone's average amounts of accumulated building construction expenditures were as follows:
For the period March 1 to December 31, 2011 ..$ 900,000
For the period January 1 to September 30, 2012 ..$ 2,300,000
Required:
1. Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site 11 as of September 30, 2012.
2. Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2012.
|
Which of the points do you think are most important
: Which of the points do you think are most important, and why? If management were to implement one of Deming's points each year, do you believe that this methodology would be effective? Why or why not
|
|
What is the x -component of the net force on the airplane
: A radio-controlled model airplane has a momentum given by [(-0.75kgm/s3)t2+(3.0kgm/s)]i^+(0.25kgm/s2)tj^ , where t is in seconds. What is the x -component of the net force on the airplane? Express your answer in terms of the given quantities.
|
|
The social and environmental challenges faced by britain
: As the lecture states: "The social and environmental challenges faced by Britain, the United States, and many European countries in the 19th Century are now being felt in industrializing states such as China and India." What are some examples of thi..
|
|
Compute the amount of the gift
: Drew Man owns land worth $60,000 with a mortgage of $20,000 against it. Drew is not personally liable for the debt. Drew gives his property to his daughter.
|
|
Prepare a schedule that discloses the individual costs
: Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2012.
|
|
What are the benefits of public health assessments
: What are the benefits of public health assessments? What are the disadvantages, if any? Give an example of a potential conflict within the community that could arise as a result of public health assessments
|
|
What is the frequency of these waves
: A radio station broadcasts radio waves with a wavelength of 3.25 m in air. The speed of sound in air is 343 m/s and the speed of light in air is 3.00 x 108 m/s. What is the frequency of these waves that I should tune my radio dial to in order to l..
|
|
The embattled german fashion label
: Hugo Boss AG, the embattled German fashion label, said it would fight discounting in the U.S. and close stores in China to protect profitability amid lackluster sales in those markets.
|
|
Compute the gross profit using the periodic system
: Assume Fong Sai-Yuk uses a perpetual system. Prepare all necessary journal entries.
|