Question

receipts are identified by an asterisk. 10-1 A-The following payments and receipts are acquired for following payments and receipts are related to land, land improvements, a acquired for use in a wholesale apparel business. The receipts are identified by a a. Finder's fee paid to real estate agency................ $ 4,000 b. Cost of real estate acquired as a plant site: Land..... 375,000 Building.. 25,000 c. Fee paid to attorney for title search............. 2,500 d. Delinquent real estate taxes on property, assumed by purchased... 31,750 e. Architect's and engineer's fees for plans and supervision... 36,000 f. Cost of removing building purchased with land in (b)....... 10,000 g. Proceeds from sale of salvage materials from old building............ 3,000 h. Cost of filling and grading land... 15,200 i. Premium on one-year insurance policy during construction........... 5,400 1. Money borrowed to pay building contractor........ 600,000* k. Special assessment paid to city for extension of water main to the • Property..... 9,000 1. Cost of repairing windstorm damage during construction..... 3,000 m. Cost of repairing vandalism damage during construction..... 1,800 n. Cost of trees and shrubbery planted.... 12,000 0. Cost of paving parking lot to be used by customers... 14,500 p. Interest incurred on building loan during construction... 33,000 q. Proceeds from insurance company for windstorm and vandalism damage..... 4,500 r. Payment to building contractor for new building. 700,000 S. Refund of premium on insurance policy () canceled after 10 month.... 450* Instructions 1. Assign each payment and receipt to Land (unlimited life). Land Improvements (limited life). Building, or Other Accounts. Indicate receipts by an asterisk. Determine the amount debited to Land, Land Improvements, and Building Identify each item by letter and list the amounts in columnar form, as follows: Land Others Item Land Improvements Building Accounts

Answer 1

Other Land Building Item Land Improvements Accounts $4,000 $400,000 $2,500 $31,750 d. $36,000 $10,000 (S3,000) $15,200 $5,400 ($600,000) $9,000 k. $3,000 S1,800 m. $12,000 $14,500 $33,000 ($4,500) q. $700,000 (S450) $773,950 S. $460,450 $26.500