Maurice Tutor

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    Argosy University/ Phoniex University/
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    Oct-2001 - Nov-2016

Category > Accounting Posted 08 Aug 2017 My Price 8.00

Disposition of PPE

I couldn't find the topic I needed which is Acquisition and Disposition of PPE.
Blue Landscaping began construction of a new plant on December 1, 2017. On this date, the company purchased a parcel of land for $138,000 in cash. In addition, it paid $1,920 in surveying costs and $4,560 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $720 being received from the sale of materials.
Architectural plans were also formalized on December 1, 2017, when the architect was paid $38,400. The necessary building permits costing $3,360 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2018 as follows.

Date of Payment   Amount of Payment
March 1   $264,000
May 1   333,600
July 1   67,200


The building was completed on July 1, 2018.
To finance construction of this plant, Blue borrowed $603,600 from the bank on December 1, 2017. Blue had no other borrowings. The $603,600 was a 10-year loan bearing interest at 10%.
Compute the balance in each of the following accounts at December 31, 2017, and December 31, 2018. (Round answers to 0 decimal places, e.g. 5,275.)

Answers

Maurice Tutor
(5)
Status NEW Posted 08 Aug 2017 04:08 PM My Price 8.00

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