Question

Garrison Company was organized on January 1. During the first year of operations, the following expenditures and receipts were recorded in random order in the account Land. Debits Cost of real estate purchased as a plant site (land and building) 1 $250,000 Accrued real estate taxes paid at the time of the purchase of the real estate. 2. 4,000 3. Cost of demolishing building to make land suitable for construction of a new building. 15,000 Architect's fees on building plans 4. 14,000 5. Excavation costs for new building. 24,000 Cost of filing and grading the land. 6. s,000 7. Insurance and taxes during construction of building. 6,000 8. Cost of repairs to building under construction caused by a small fire. 7,000 Interest paid during the year, of which $54,000 pertains to the construction period. 9. 64,000 10. Full payment to building contractor. 780,000 11 Cost of parking lots and driveways. 46,000 12 Real estate taxes paid for the current year on the land. 4,000 $1,219,000 Total Debits Credits $3,000 13. Insurance proceeds for fire damage. Proceeds from salvage of demolished building. 3,500 14. $6,500 Total Credits Analyze the foregoing transactions using the following tabular arrangement. Insert the amounts in the appropriate columns and select appropriate account title for transactions failing under other column. (Enter credit transactions with negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1

Solution :-

Item	Land	Buildings	Other	Account Title
1	250000			Land Improvements
2	4000			Property Tax Expense
3	15000			Land Improvements
4		14000		Maintenance and Repairs Expense
5		24000		Land Improvements
6	5000			Land Improvements
7		6000		Insurance Expense
8			7000	Fire Loss Expense
9		54000	10000	Interest Expense
10		780000
11			46000	Land Improvements
12			4000	Property Tax Expense
13			-3000
14	-3500
Total	270500	878000	64000