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Allocating payments and receipts to fixed asset accounts a. Fee paid to attorney for title search b. Cost of real estate acquired as a plant
Allocating payments and receipts to fixed asset accounts a. Fee paid to attorney for title search b. Cost of real estate acquired as a plant site: Land $3,000 280,000 60,000 15,500 5,000 3,000 f. Special assessment paid to city for extension of water main to the property 28,000 g. Architect's and engineer's fees for plans and supervision 50,000 h. Premium on 1-year insurance policy during construction 5,000 i. Cost of filling and grading land j. Money borrowed to pay building contractor k. Cost of repairing windstorm damage during construction l. Cost of paving parking lot to be used by customers m. Cost of trees and shrubbery planted n. Cost of floodlights installed on parking lot o. Cost of repairing vandalism damage during construction 2,500 p. Proceeds from insurance company for windstorm and vandalism damage 8,000 q. Payment to building contractor for new building 700,000 r. Interest incurred on building loan during construction 34,000 s. Refund of premium on insurance policy (h) canceled after 11 months 400 receipts as negative amounts using the minus sign. 3. Land used as a plant site lose its ability to provide services; thus, it depreciated. How ever, land improvements lose their ability to provide services as time passes an are, therefore, depreciated over a 20-year life using the double-declining-balance method
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