75,000P624,900Additional information:1.To acquire the land and building on 1/31/10, the company paid P100,000 cash and 1,000 ordinary shares of its (par value = P100/share) which is very actively traded and had a market value per share of P170.2.When the old building was removed, Gibbs paid Kwik Demolition Co. P4,000, but also received P1,500 from the sale of salvaged material.3.Legal fees covered the following:Cost of organizationP2,500Examination of title covering purchase of land2,000Legal work in connection with the building construction 1,500P6,0004.The fire insurance premium covered premiums for a three-year term beginning May 1, 2010.5.General expenses covered the following for the period 1/2/10 to 8/1/10.President’s salaryP20,000Plant superintendent covering supervision of new building 10,000P30,0006.Because of the rising land costs, the president was sure that the land was worth at least P75,000 more than what it cost the company.InstructionsDetermine the proper balances as of 12/31/10 for a separate land account and a separate building account. Use separate T-accounts (one for land and one for building) labeling all the relevant amounts and disclosing all computations.
Looking for a Similar Assignment? Order now and Get 20% Discount! Use Code GET20