Basler Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.

Problems: Set A 459 Prepare adjusting entries for amortization.

(SO 7)

Prepare entries to set up appropriate accounts for different intangibles;

calculate amortization.

(SO 7)

Discuss implications of amortization period.

(SO 7)

Answer questions on depreciation and intangibles.

(SO27)

Compute depreciation under units-of-activity method.

(SO 9)

Compute declining-balance and units-of-activity depreciation.

(SO 9)

Determine acquisition costs of land and building.

(SO 1)

460 CHAPTER 9 Reporting and Analyzing Long-Lived Assets Debits. 1. Cost of real estate purchased as a plant site (land $255,000 and building $25,000) $280,000 2. Installation cost of fences around property 6,800 3. Cost of demolishing building to make land suitable for construction of new building 19,000 4, Excavation costs for new building 23,000 5. Accrued real estate taxes paid at time of purchase of real estate oko 6. Cost of parking lots and driveways 29,000 7. Architect's fees on building plans 38,000 8. Real estate taxes paid for the current year on land 5,800 9. Full payment to building contractor 640,000

$1,043,779 Credits 10. Proceeds from salvage of demolished building $8,000 Instructions Analyze the transactions using the following table column headings. Enter the number of each transaction in the Item column, and enter the amounts in the appropriate columns.

For amounts in the Other Accounts column, also indicate the account title.

Land $293,179 Item Land Building Other Accounts Journalize equipment