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

Instructions Analyze the foregoing transactions using the following column headings. Insert the number of each transaction in the Item space, and insert the amounts in the appropriate columns. For amounts entered in the Other Accounts column, also indicate the account title.

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Debits 1. Accrued real estate taxes paid at time of purchase of real estate 2. Real estate taxes on land paid for the current year $ 2,000 3.000 3. Full payment to building contractor 600.000 4. Excavation costs for new building 25.000 5. Cost of real estate purchased as a plant site (land $100,000 and building $25.000) 125.000 6. Cost of parking lots and driveways 7. Architect's fees on building plans 8. Installation cost of fences around property 15.000 10,000 4.000 9. Cost of demolishing building to make land suitable for construction of new building 21.000 $805.000 Credit 10. Proceeds from salvage of demolished building $ 2.500