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Semenov [28]
3 years ago
12

On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $40,000 in cash and giving a short-term n

ote for $306,000. Legal fees paid were $1,665, delinquent taxes assumed were $13,100, and fees paid to remove an old building from the land were $22,500. Materials salvaged from the demolition of the building were sold for $5,200. A contractor was paid $1,051,800 to construct a new warehouse.
Requried:
Determine the cost of the land to be reported on the balance sheet.
Business
1 answer:
Norma-Jean [14]3 years ago
3 0

Answer:

See below

Explanation:

The cost of land to be included in the balance sheet would not only include the price paid to acquire the land but also include cost or revenue received in the process while also include all activities required to bring the land to the stage in which it may be ready for usage.

With regards to the foregoing, the cost of land to be included in the balance is is

= Cash paid + short term note + legal fee + delinquent taxes + Fees paid to remove old building from the land - sales of materials salvaged from demolition of the building

= $40,000 + $306,000 + $1,665 + $13,100 + $22,500 - $5,200

= $378,065

Therefore, cost of land to be included in the balance sheet is $378,065

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What is the difference in accounting treatment of unrealized gains and losses across these three categories of investments
hammer [34]

Answer:

Unrealized gains and losses treatment:

Available for sale - recorded in OCI

Held till maturity - not recognized in financial statements until maturity

Held for Trading - Fair value through profit and loss

Explanation:

There are three categories of financial instruments. Available for Sale AFS, Held for trading HFT and Held till maturity HTM. Financial instruments are classified in these categories and then treatments is according to their classification. IAS 39 and IFRS 9 have provided complete guidelines for the treatment of the financial securities.

6 0
2 years ago
A shareholder invested in a mutual fund and has signed a letter of intent to invest $25,000. Her original investment was $13,000
Delvig [45]

Based on the information given for her to complete her letter, she must deposit D) $12,000.

<h3>Deposit:</h3>

Using this formula

Deposited amount=Amount invested-Original investment

Where:

Amount invested=$25,000

Original investment=$13,000

Let plug in the formula

Deposited amount=$25,000-$13,000

Deposited amount=$12,000

Inconclusion for her to complete her letter, she must deposit D) $12,000.

Learn more deposit here:brainly.com/question/1752098

5 0
2 years ago
Multiple Choice Question 38 Vaughn, Inc. has 1000 shares of 5%, $10 par value, cumulative preferred stock and 63000 shares of $1
mart [117]

Answer:

$0.5 per share

Explanation:

Preference Share Capital = 1000 shares * $10 = 10,000

Annual Dividend in Total = 10000*5% = $500

Annual Dividend Per Share = $500/1000 = $0.5 per share

4 0
2 years ago
This service allows you to pay at a point of sale and accesses funds in the bank but usually does not charge you a fee:
satela [25.4K]

Answer:

A debit card

Explanation:

A debit card allows customers to make electronic payments using the funds at their bank accounts. If the customer does not have sufficient funds in their bank accounts, the transaction won't go through.

A debit card is similar to a credit card in appearance. However,  a debit card does not levy interest fees or late payment fees because it's not a credit facility.

4 0
2 years ago
Daisy Inc., a manufacturing company, is planning to invest in newequipment. Thomas, the cost accounting manager, was in favor as
NeX [460]

Answer:

The correct answer is D. Credibility.

Explanation:

Thomas violated the credibility of his studies, because he omitted the error which caused a false expected result.

Credibility is that characteristic of certain things that make them credible, we talk about situations, verses or estimates of a certain presence. When we say that we observe the credibility of something we are making a measurement of what is credible and not facing a series of examples in order to make a comparison in this regard.

7 0
3 years ago
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