Question

ullumber Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.

Debit
1.		Excavation costs for new building		$27,000
2.		Architect’s fees on building plans		37,000
3.		Full payment to building contractor		644,000
4.		Cost of real estate purchased as a plant site (land $259,000 and building $25,000)		284,000
5.		Cost of parking lots and driveways		33,000
6.		Accrued real estate taxes paid at time of purchase of land		3,570
7.		Installation cost of fences around property		7,200
8.		Cost of demolishing building to make land suitable for construction of new building		35,000
9.		Real estate taxes paid for the current year on land		6,800
				$1,077,570
Credit
10.		Proceeds from salvage of demolished building		$ 12,400

Analyze the transactions using the following table column headings. Enter the amounts in the appropriat

Answer 1

Answer Land Building Item Other Accounts Amounts Accounts Title Not Applicable $27,000 $37,000 Not Applicable $644,000 Not Applicable Not Applicable $284,000 $33,000 Land Improvements $3,570 Not Applicable $7,200 Land Improvements $35,000 Not Applicable $6,800 Property Tax Expense Not Applicable ($12,400) $310,170 $708,000