Question

Exercise 216 Kendrick Company was organized on January 1. During the first year of operations, the following expenditures and receipts were recorded in random order. 10.000 4.000 10,000 30,000 5,000 6,000 Increases 1. Cost of real estate purchased as a plant site (land and building) 2. Accrued real estate taxes paid at the time of the purchase of the real estate Cost of demolishing building to make land suitable for construction of a new building Architect's fees on building plans 5. Excavation costs for new building Cost of filling and grading the land * Insurance and taxes during construction of building Cost of repairs caused by a small fire shortly after completion of building Interest paid during the year, of which $45,000 pertains to the construction period 10 Full payment to building contractor 11. Cost of parking lots and driveways 12. Real estate taxes paid for the current year on the land Total Increases Decreases 1. Proceeds from salvage of demolished building Total Decreases 7.000 74.000 95,000 35,000 $1.275,000 1,500 Analyze the foregoing transactions using the following tabular arrangement. Insert the amounts in the appropriate columns and select appropriate account title for transactions falling under other column. (Enter credit transactions with negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Buildings Other Account Title

second photo is to show the options for the account titles

Answer 1

Item	Land	Buildings	Other	Account Title
1	130000
2	4000
3	10000
4		14000
5		30000
6	5000
7		6000
8			7000	Fire loss expense
9		45000	29000	Interest expense
10		955000
11			36000	Land improvements
12			4000	Property tax expense
13	-3500
Totals	145500	1050000	76000