Answer:
$23,060
Explanation:
Land improvement cost comprises of cost spent on the upgrade of a given land and which are subject to wear and tear. They differ from the cost of the land itself which are not depreciable. Accounting rules require that land improvement costs are depreciated, whereas the cost of land itself is not depreciated.
In the given question, the cost of land include the cost of acquisition, survey and legal fees, and land clearing fees. These costs are necessary to acquire title on the land and make it ready for use.
Land improvement cost, on the other hand, include fencing and the cost of installing lighting and signage. This is because these items will depreciate and may need to be replace after some time.
Therefore, land improvement cost = cost of fencing + cost to install lighting and signage
=$9,000 + $14,060
= $23,060.
Answer:
the question is incomplete, so I looked for a similar one:
Real estate commissions billed to clients amount to $4,000. Paid $700 in cash for the current month's rent. Paid $250 cash on account for office supplies purchased in transaction 2. Received a bill for $800 for advertising for the current month. Paid $2,500 cash for office salaries. Paid $1,200 cash dividends to stockholders. Received a check for $2,000 from a client in payment on account for commissions billed
<u>Income statement</u>
Service revenue $4,000
Operating expenses:
- Rent $700
- Advertising $800
- Office salaries $2,500 <u>($4,000)</u>
Net income $0
Accrual accounting recognizes both expenses and revenues when they occur, not when a cash flow is associated to them. E.g. even though only $2,000 were paid by clients, the whole $4,000 must be considered revenue.
Answer:
C (I think)
Explanation:
Wisdom is something gained by a combination of knowledge and experience. that is why wise people are typically portrayed to be old, although young people can be wise too in certain areas.
Answer and Explanation:
The journal entry is shown below:
Truck A/c Dr $4,500
To Cash A/c $4,500
(Being the truck is replaced for cash)
Here the truck is debited as it increased the assets and credited the cash as it decreased the assets