kế toán quốc tế 2 ketoan

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<b>Exercise 10–1</b>

<i><b>Capitalized cost of land:</b></i>

Purchase price ………$60,000
Demolition of old building ………$4,000

Less: Sale of materials ………..(2,000)………… 2,000
Legal fees for title investigation……… 2,000
Total cost of land………... $64,000

<i><b>Capitalized cost of building:</b></i>

Construction costs ………..$500,000
Architect's fees ………...12,000
Interest on construction loan ………5,000
Total cost of building ……….$517,000

Note: Property taxes on the land for the period after acquisition are not part of
acquisition cost. They are expensed in the period incurred.

<b>Exercise 10–2</b>

To record the purchase of a machine:

Machine ($45,000 + 2,200 + 700 + 1,000) ... 48,900

Accounts payable... 47,200
Cash ... 1,700
To record prepaid insurance for the machine:

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