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) $(288,800) 2 T Payment for construction from note proceeds 288,800 10,420 (c) Cost of land fill and clearing Delinquent real estate taxes on property assumed by purchaser 8,950 a (e) Premium on 6-month insurance policy during construction 7,200 Refund of 1-month insurance premium because construction completed early (1,200) b Architect's fee on building 26,350 (h) Cost of real estate purchased as a plant site (land $200,500 and building $56,200) 256,700 Commission fee paid to real estate agency 8,430 5 Installation of fences around property 4,090 3 Cost of razing and removing building 11,510 Proceeds from salvage of demolished building (5,340) (m) Interest paid during construction on money borrowed for construction 14,280 20,100 3 Cost of parking lots and driveways O Cost of trees and shrubbery planted (permanent in nature) 13,710 (p) Excavation costs for new building 2,880 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.) Land Improvements Item Land Building Other Accounts $ 2 o

Answer 1

Item Land Land Improvements Building Other accounts -2,88,800 2,88,800 10,420 8,950 7,200 -1,200 26,350 . . 300 2,56,700 8,430 4,090 11,510 -5,340 14,280 20,100 13,710 2,880 Total 3,04,380 24,190 3,38,310