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...


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)



$(275,000)



b.    Payment for construction from note proceeds



275,000



c.    Cost of land fill and clearing



8,000



d.    Delinquent real estate taxes on property assumed by purchaser



7,000



e.    Premium on 6-month insurance policy during construction



6,000



f.    Refund of 1-month insurance premium because construction completed early



(1,000)



g.    Architect’s fee on building



22,000



h.    Cost of real estate purchased as a plant site (land $200,000 and building $50,000)



250,000



i.    Commission fee paid to real estate agency



9,000



j.    Installation of fences around property



4,000



k.    Cost of razing and removing building



11,000



l.    Proceeds from salvage of demolished building



(5,000)



m.    Interest paid during construction on money borrowed for construction



13,000



n.    Cost of parking lots and driveways



19,000



o.    Cost of trees and shrubbery planted (permanent in nature)



14,000



p.    Excavation costs for new building



3,000


Instructions


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.








Item    Land    Land Improvements    Buildings    Other Accounts


Jun 10, 2022
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