Merchant Company purchased property for a building site. The…

Merchant Company purchased property for a building site. The costs associated with the property were: Purchase Price                                             $ 185,000 Real estate commission                                 $  15,000 Legal fees                                                    $      700 Expenses of clearing the land                         $    2,000 Expenses to remove the old building               $    4,000   What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

Jervis accepts all major bank credit cards, including those…

Jervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 3% charge on sales for using its card. On June 28, Jervis had $3,500 in credit card sales all of which were paid for using a NB Card credit card. What entry should Jervis make on June 28 to record the deposit?

The following transactions have been journalized and posted…

The following transactions have been journalized and posted to the proper accounts. 1. Mark Call invested $7,000 cash in his new design services business.2. The business pre-paid the first month’s rent of $700 cash.3. The business purchased equipment by paying $2,000 cash and issuing a note payable for $4,500.4. The business purchased supplies for $850 cash.5. The business billed a client for $4,000 of design services completed.6. The business received $3,000 cash for the completed services. What is the balance in Cash for this design service business?

A machine with an original cost of $120,000 and no salvage v…

A machine with an original cost of $120,000 and no salvage value had an estimated useful life of 6 years, but after 4 complete years, it was decided that the original estimate of useful life should have been 8 years. Assuming the company uses straight-line depreciation, the amount of depreciation expense in year 5 is: