1. Which of the following is included in the cost of a plant asset? A) amounts p
ID: 2589058 • Letter: 1
Question
1. Which of the following is included in the cost of a plant asset? A) amounts paid to make the asset ready for its intended use B) regular repair and maintenance costs C) replacement of damaged parts of the asset D) wages of workers who use the asset in normal operations 2.McArthur Company plans to develop a shopping center. In the first quarter, the following amounts were spent: Acquisition of land $21,000 urveys and legal fees Land clearin 1000 6000 16,060 encin Install lighting and signage What amount should be recorded as the land improvements cost? 3. For each of the following amounts paid by a purchaser, determine whether the amount is debited to Land, Land Improvements, or Building Transaction ccount Debited Building permits Cost of clearing land and removing unwanted buildings Parking lot lighting Delinquent property taxes on land Cost to renovate a building to make it ready for use Taxes assessed to transfer ownership (title) of land 4. Sales revenue for a sporting goods store amounted to $526,000 for the current period. All sales are on account and are subject a sales tax of 10%. Which of the following would be included in the journal entry to record the sales transaction? A) a debit to Sales Revenue for $526,000 B) a credit to Accounts Receivable for $526,000 C) a debit to Sales Tax Payable for $52,600 D) a debit to Accounts Receivable for $578,600 5. Cash received in advance of providing goods or performing services is recorded as A) Unearned Revenue B) Accrued Revenue C) Service Revenue D) Uncollected Revenue 6.Andy and lan formed a partnership on April 1, 2019. Andy contributes equipment to the business that originally cost $82,000 and on which accumulated depreciation of $16,000 has been recorded. The current market value of the equipment i $74,000. The value of the equipment recorded in the partnership journal is 7. Which of the following is TRUE of a partnership balance sheet? A) Unlike a corporation's balance sheet, it includes all income statement account information. B) It excludes any current liabilities. C) It reports a separate capital account for each partner. D) It details the interest expenses of the business.Explanation / Answer
1)correct option is "A"
All cost incurred to make asset reasy for use is to be added to cost of plant asset
2)land improvement cost = Fencing +lighting & signage
= 6000+16060
= $ 22060
3')
4)correct option is "D"
Sales tax payable :526000*.10 =52600
Total receivable :526000sales revenue +52600 sales tax = 578600
1) building 2 Land 3l Land improvement 4 Land 5 Building 6 LandRelated Questions
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