Question

Exercise 10-1 Your answer is partially correct. Try again The expenditures and receipts below 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) (b)Payment for construction from note proceeds (c) Cost of land fill and clearing (d) Delinquent real estate taxes on property assumed by purchaser (e) Premium on 6-month insurance policy during construction (f) Refund of 1-month insurance premium because construction completed early (g) Architect's fee on building (h) Cost of real estate purchased as a plant site (land $200,300 and building $52,100) (i) Commission fee paid to real estate agency (i)Installation of fences around property (k) Cost of razing and removing building (I)Proceeds from salvage of demolished building (m) Interest paid during construction on money borrowed for construction (n) Cost of parking lots and driveways (o) Cost of trees and shrubbery planted (permanent in nature) (p) xcavation costs for new building $(288,700) 288,700 10,320 7,760 10,320 (1,720 ) 26,120 252,400 9,640 11,080 (5,120 ) 14,020 17,430 13,410 3,030 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.)

Answer 1

Item	Land	Land Improvements	Building		Other Accounts
a				-$288,700.00	Notes Payable
b			$288,700.00
c		$10,320.00
d		$7,760.00
e				$10,320.00	Prepaid Insurance
f			$8,600.00	-$1,720.00	Prepaid Insurance
g			$26,120.00
h	$200,300.00		$52,100.00
I	$9,640.00
j		$4,390.00
k		$11,080.00
l		-$5,120.00
m			$14,020.00
n			$17,430.00
o				$13,410.00	Gardening Expenses
p			$3,030.00