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    Schedule amounts debited to land, building, machinery, equipment

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    The following expenditures were incurred by Raven Run Industries. These expenditures relate to land, buildings and machinery and equipment.

    Title Search $ 600
    Architect's fees 3,000
    Cash paid for land and old building 90,000
    Removal of old building 16,000
    Excavation before construction 18,000
    Interest on short-term loans during construction 7,000
    Machinery purchased 57,000
    Freight on machinery purchased 1,200
    Storage charges on machinery until construction was finished 1,900
    New building construction 475,000
    Assessment by city for drainage 1,500
    Charges for transporting machinery from storage 700
    Installation of machinery 2,100
    Landscaping of facility 5,500

    Provide a schedule showing the amount debited to Land, to Buildings, to Machinery and Equipment and to other expense accounts. The benefits of capitalizing interest during construction exceed the cost of implementation

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    Solution Summary

    Schedule amounts debited to land, building, machinery and equipment is examined.