Answer Happy

Problem 5 (15 Points) The Band Company was organized on January 1. During the first year of operations, the following expenditures and receipts were recorded in random order in the account, Land. Expenditures 1. Cost of real estate purchased as a plant site (land $220,000 and old building $30,00) 2. Accrued real estate taxes paid at the time of the purchase of the real estate. 3. Cost of demolishing building to make land suitable for construction of a new building. 4. Architect's fees on building plans. 5. Installation cost of fences around the building 6. Excavation costs for new building. 7. Cost of filling and grading the land. 8. Full payment to building contractor. 9. Cost of parking lots and driveways. 10. Real estate taxes paid for the current year on the land. Total Receipts 11. Proceeds from salvage of demolished building Total $ 250,000 35,000 Other 25,000 20,000 15,000 40,000 35,000 820,000 55,000 10.000 $1.305.000 16.500 $16.500 Instructions Analyze the foregoing transactions using the following tabular arrangement. Insert the number of each transaction in the Item space and insert the amounts in the appropriate columns and show the total for each column. Land Item Land Buildings Improvements Account Title
Problem 6 (10 points) Bob Seger Company purchased equipment on January 1, 2021 for $110,000. It is estimated that the equipment will have a $10,000 salvage value at the end of its 10-year useful life. It is also estimated that the equipment will produce 100,000 units over its 10-year life. You must show all of your calculations. Instructions Answer the following independent questions. 1. Compute the amount of depreciation expense for the year ended December 31, 2021, using the straight-line method of depreciation. 2. If 15,000 units of product were produced in 2021, what is the book value of the equipment at December 31, 2021? The company uses the units-of-activity depreciation method. ||