Bridgeport Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Abstract company’s fee for title search $910 Architect’s fees 5,548 Cash paid for land and dilapidated building thereon 152,250 Removal of old building $35,000 Less: Salvage 9,625 25,375 Interest on short-term loans during construction 12,950 Excavation before construction for basement 33,250 Machinery purchased (subject to 2% cash discount, which was not taken) 96,250 Freight on machinery purchased 2,345 Storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 3,815 New building constructed (building construction took 6 months from date of purchase of land and old building) 848,750 Assessment by city for drainage project 2,800 Hauling charges for delivery of machinery from storage to new building 1,085 Installation of machinery 3,500 Trees, shrubs, and other landscaping after completion of building (permanent in nature) 9,450. Instructions. Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during constructionexceed the cost of implementation. Indicate how any costs notdebited to these accounts should be recorded.

Amounts debited to land:

Abstract company’s fee for title search $910

Cash paid for land and dilapidated building thereon 152,250

Removal of old building $25,375 (less salvage value)

Assessment by city for drainage project $2,800

Trees, shrubs, and other landscaping after completion of building (permanent in nature) $9,450

Total debited to land $190,785

Amounts debited to buildings:

Architect’s fees $5,548

Interest on short-term loans during construction $12,950

Excavation before construction for basement $33,250

New building constructed $848,750

Total debited to buildings: $900,948

Amounts debited to Machinery and Equipment:

Machinery purchased $94,325 (the purchase cost minus the 2% discount that was not taken, which goes to other expenses)

Freight on machinery purchased $2,345

Storage charges on machinery $3,815

Installation of machinery $3,500

Total debited to Machinery and Equipment: $103,985

answer; (identity theft);

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23