Question

Wildhorse Co. 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		$24,000
2.		Architect’s fees on building plans		34,000
3.		Full payment to building contractor		641,000
4.		Cost of real estate purchased as a plant site (land $256,000 and building $25,000)		281,000
5.		Cost of parking lots and driveways		30,000
6.		Accrued real estate taxes paid at time of purchase of land		3,270
7.		Installation cost of fences around property		6,900
8.		Cost of demolishing building to make land suitable for construction of new building		32,000
9.		Real estate taxes paid for the current year on land		6,500
				$1,058,670
Credit
10.		Proceeds from salvage of demolished building		$ 12,100

Analyze the transactions using the following table column headings. Enter the amounts in the appropriate columns. For amounts in the Other Accounts column, also indicate the account title. (If an amount falls into either the Land or Buildings column, enter "Not Applicable" in the account title column. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

						Other Accounts
Item		Land		Building		Amounts	Account Title
1		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount	choose an account title                                                          Land ImprovementsProperty Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable
2		enter a dollar amount		enter a dollar amount		enter a dollar amount	choose an account title                                                          Land ImprovementsProperty Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable
3		enter a dollar amount		enter a dollar amount		enter a dollar amount	choose an account title                                                          Land ImprovementsProperty Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable
4		enter a dollar amount		enter a dollar amount		enter a dollar amount	choose an account title                                                          Land ImprovementsProperty Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable
5		enter a dollar amount		enter a dollar amount		enter a dollar amount	choose an account title                                                          Land ImprovementsProperty Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable
6		enter a dollar amount		enter a dollar amount		enter a dollar amount	choose an account title                                                          Land ImprovementsProperty Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable
7		enter a dollar amount		enter a dollar amount		enter a dollar amount	choose an account title                                                          Land ImprovementsProperty Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable
8		enter a dollar amount		enter a dollar amount		enter a dollar amount	choose an account title                                                          Land ImprovementsProperty Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable
9		enter a dollar amount		enter a dollar amount		enter a dollar amount	choose an account title                                                          Land ImprovementsProperty Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable
10		enter a dollar amount		enter a dollar amount		enter a dollar amount	choose an account title                                                          Land ImprovementsProperty Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable
		$enter a total for the land column		$enter a total for the building column

Answer 1

Wildhorse Company
	Land	Building	Amounts	Account title
Excavation costs		24000		NA
Architects fees		34000		NA
Full pymt. To contractor		641000		NA
Cost of real estate	281000			NA
Cost of parking lots			30000	Land imp.
Accrued real estate taxes	3270			NA
Installation cost			6900	Land imp.
Cost of demolishing building	32000			NA
Real estate teaxes paid			6500	Property tAx expense
Proceeds from salvage	-12100			NA
	304170	699000	43400