On March 1, 2011, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2011. Costs incurred during this period are listed below:Demolition of old building ………….. $ 4,000Architect’s fees (for new building) ……….. 12,000Legal fees for title investigation of land ………. 2,000Property taxes on land (for period beginning March 1, 2011) . 3,000Construction costs …………….. 500,000Interest on construction loan ………….. 5,000Salvaged materials resulting from the demolition of the old building were sold for $2,000.
Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
On May 10, Paige Corporation issues 2,500 shares of $5 par value common stock for cash at $13 per share. Journalize the issuance of the stock.
On May 10 Troyer Corporation issues 2,000 shares of $5 par value common stock for cash at $13 per share. Journalize the issuance of the stock.
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