Answer:
Land 373,500
Building 1,100,000
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land improvements 67,000
Fence 55,000
Sign 12,000
Explanation:
Land cost:
cash 160,000
note payable 145,000
delinquent property tax 4,000
insurance costing 1,500
level the land 3,000
soil <u> 60,000</u>
Total land: 373,500
The land will be recorded for all the cost necessary to get it ready for use.
The soil, once added can't be differentiate from the original land. It is added to the land is not an improvement.
The office building will be for 1,100,000
land improvements will be the fence and signs:
fence 55,000
sign <u> 12,000 </u>
total 67,000
Answer:
d. inventory is sold at a profit
Explanation:
Net working capital increases when <u>inventory is sold at a profit</u>
Net working capital = Current Assets - Current Liabilities
. Cash, Inventory and receivables are part of current assets
Hence, when inventory is sold at profit, cash received is more than decrease in inventory and hence, current asset increase and hence, working capital increases. When it is sold at cost, it remains the same. Purchase of inventory on credit will lead to same amount increase in current assets and current liabilities. Payment by customer will lead to increase in cash and decrease in accounts receivable, Hence, no impact
Answer: that means you got 3/4 worth of supplies that were purchased.
Explanation:
So the way you did this problem is so weird and is not understandable
Answer: $294,000
Explanation:
Gift of $71,000 is <u>time restricted</u> as it cannot be spent for 4 years.
Gift of $91,000 is <u>purpose restricted</u> as it must be used for the purpose of salaries.
Gift of $121,000 is <u>permanently restricted</u> as it must be held forever.
Income earned from the above gift of $11,000 is <u>purpose restricted</u> for needy families.
The gifts with donor restrictions total:
= 71,000 + 91,000 + 121,000 + 11,000
= $294,000
