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9-1 eBook Question Content Area Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and
9-1
eBook
Question Content Area
Allocating payments and receipts to fixed asset accounts
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk.
Item | Description | Amount |
---|---|---|
a. | Fee paid to attorney for title search | $3,000 |
b. | Cost of real estate acquired as a plant site: Land | 290,000 |
b. Cost of real estate acquired as a plant site: | Building (to be demolished) | 50,000 |
c. | Delinquent real estate taxes on property, assumed by purchaser | 15,500 |
d. | Cost of razing and removing building acquired in (b) | 5,000 |
e. | Proceeds from sale of salvage materials from old building | 5,000* |
f. | Special assessment paid to city for extension of water main to the property | 28,000 |
g. | Architects and engineers fees for plans and supervision | 60,000 |
h. | Premium on 1-year insurance policy during construction | 7,000 |
i. | Cost of filling and grading land | 11,000 |
j. | Money borrowed to pay building contractor | 800,000* |
k. | Cost of repairing windstorm damage during construction | 5,000 |
l. | Cost of paving parking lot to be used by customers | 31,000 |
m. | Cost of trees and shrubbery planted | 11,000 |
n. | Cost of floodlights installed on parking lot | 1,000 |
o. | Cost of repairing vandalism damage during construction | 2,000 |
p. | Proceeds from insurance company for windstorm and vandalism damage | 8,000* |
q. | Payment to building contractor for new building | 900,000 |
r. | Interest incurred on building loan during construction | 35,000 |
s. | Refund of premium on insurance policy (h) canceled after 11 months | 500* |
Required:
1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign.
Item | Account | Amount |
---|---|---|
a. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 2 |
b. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 4 |
c. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 6 |
d. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 8 |
e. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 10 |
f. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 12 |
g. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 14 |
h. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 16 |
i. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 18 |
j. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 20 |
k. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 22 |
l. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 24 |
m. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 26 |
n. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 28 |
o. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 30 |
p. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 32 |
q. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 34 |
r. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 36 |
s. | LandLand ImprovementsBuildingOther Accounts | $fill in the blank 38 |
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