Question

The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses.

(a)		Money borrowed to pay building contractor (signed a note)		$(286,200	)
(b)		Payment for construction from note proceeds		286,200
(c)		Cost of land fill and clearing		11,120
(d)		Delinquent real estate taxes on property assumed by purchaser		9,070
(e)		Premium on 6-month insurance policy during construction		10,020
(f)		Refund of 1-month insurance premium because construction completed early		(1,670	)
(g)		Architect’s fee on building		25,160
(h)		Cost of real estate purchased as a plant site (land $202,400 and building $53,700)		256,100
(i)		Commission fee paid to real estate agency		8,800
(j)		Installation of fences around property		4,080
(k)		Cost of razing and removing building		10,690
(l)		Proceeds from salvage of demolished building		(5,040	)
(m)		Interest paid during construction on money borrowed for construction		14,300
(n)		Cost of parking lots and driveways		20,510
(o)		Cost of trees and shrubbery planted (permanent in nature)		13,890
(p)		Excavation costs for new building		3,000

Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title. (Enter receipt amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). If no entry is required in other accounts, select "No Entry" for the account titles.)

Item		Land		Land Improvements		Building		Other Accounts

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

(l)

(m)

(n)

(o)

(p)

List Of Accounts

Accounts Payable
Accumulated Depreciation-Buildings
Accumulated Depreciation-Equipment
Accumulated Depreciation-Machinery
Accumulated Depreciation-Trucks
Buildings
Cash
Computers
Common Stock
Contribution Expense
Contribution Revenue
Cost of Goods Sold
Depreciation Expense
Direct Labor
Discount on Notes Payable
Equipment
Factory Overhead
Forklift
Furniture
Gain on Disposal of Buildings
Gain on Disposal of Equipment
Gain on Disposal of Machinery
Gain on Disposal of Trucks
Gain on Disposal of Plant Assets
Insurance Expense
Interest Expense
Interest Payable
Interest Revenue
Inventory
Land
Land Improvements
Loss on Disposal of Buildings
Loss on Disposal of Equipment
Loss on Disposal of Machinery
Loss on Disposal of Trucks
Machinery
Maintenance and Repairs Expense
Materials
No Entry
Notes Payable
Organization Expense
Paid-in Capital in Excess of Par - Common Stock
Prepaid Insurance
Retained Earnings
Salaries and Wages Expense
Sales Revenue
Trading Securities
Trucks

Answer 1

Land Land Improvements Building Other Accounts $ 286,200 Notes Payable $286,200 (6) c) d) $ 11.120 $ 9,070 $ 10,020 $ (1.670) $ 25,160 $256.100 $ 8.800 (h) @ 10 (k) W 4,080 S 10,690 (5,040) S S 14.300 (n) 20,510 lo S 13.890 $ 3.000