identify each of the following expenditures as chargeable to (a) land, (b) land improvements, (c) buildings…

identify each of the following expenditures as chargeable to (a) land, (b) land improvements, (c) buildings, (d) machinery and equipment, or (e) other account(s). (1) cost of paving parking area for employees and customers (2) insurance during construction of building (3) interest incurred on loan during construction of building (4) fee paid for installation of equipment (5) special foundation for new equipment acquired (6) insurance on new equipment while in transit (7) freight charges on new equipment (8) cost of repairing vandalism damage to equipment during installation (9) sales tax on new equipment (10) cost incurred in repairing damage resulting from installation of new equipment (11) cost of land fill for building site (12) cost of lubricating oil purchased for periodic oil changes for equipment (13) parking lot lighting (14) installing a fence around the parking lot (15) repainting the trim on a building (16) special assessment paid to city for extension of water main to property (17) cost of razing and removing the old building on property acquired for a building site (18) delinquent real estate taxes assumed by purchaser on property acquired for a building site (19) attorneys fee for title search (20) architects fee for building plans and supervision of construction

identify each of the following expenditures as chargeable to (a) land, (b) land improvements, (c) buildings, (d) machinery and equipment, or (e) other account(s). (1) cost of paving parking area for employees and customers (2) insurance during construction of building (3) interest incurred on loan during construction of building (4) fee paid for installation of equipment (5) special foundation for new equipment acquired (6) insurance on new equipment while in transit (7) freight charges on new equipment (8) cost of repairing vandalism damage to equipment during installation (9) sales tax on new equipment (10) cost incurred in repairing damage resulting from installation of new equipment (11) cost of land fill for building site (12) cost of lubricating oil purchased for periodic oil changes for equipment (13) parking lot lighting (14) installing a fence around the parking lot (15) repainting the trim on a building (16) special assessment paid to city for extension of water main to property (17) cost of razing and removing the old building on property acquired for a building site (18) delinquent real estate taxes assumed by purchaser on property acquired for a building site (19) attorneys fee for title search (20) architects fee for building plans and supervision of construction

Answer

Brief Explanations:

  1. Paving parking area is a land - improvement. Insurance during building construction and interest on building loan are part of building costs. Installation fee, special foundation, transit insurance, freight charges, vandalism repair, sales tax, and installation - related repair for equipment are all part of machinery and equipment costs. Land fill cost is for land. Lubricating oil is an expense not capitalized to fixed assets. Parking lot lighting and fence are land improvements. Repainting building trim is a maintenance expense (other account). Special assessment, razing old building, delinquent taxes, title search fee, and architect's fee are related to land or building acquisition and are charged to land or buildings as appropriate.

Answer:

(1) b. Land Improvements (2) c. Buildings (3) c. Buildings (4) d. Machinery and Equipment (5) d. Machinery and Equipment (6) d. Machinery and Equipment (7) d. Machinery and Equipment (8) d. Machinery and Equipment (9) d. Machinery and Equipment (10) d. Machinery and Equipment (11) a. Land (12) e. other account(s) (13) b. Land Improvements (14) b. Land Improvements (15) e. other account(s) (16) a. Land (17) a. Land (18) a. Land (19) a. Land or c. Buildings (depending on nature) (20) a. Land or c. Buildings (depending on nature)