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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
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. a. Fee paid to attorney for title search b. Cost of real estate acquired as a plant site: Land Building (to be demolished) c. Delinquent real estate taxes on property, assumed by purchaser d. Cost of razing and removing building acquired in (b) e. Proceeds from sale of salvage materials from old building f. Special assessment paid to city for extension of water main to the property g. Architect's and engineer's fees for plans and supervision h. Premium on 1-year insurance policy during construction i. Cost of filling and grading land j. Money borrowed to pay building contractor k. Cost of repairing windstorm damage during construction 1. 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 p. Proceeds from insurance company for windstorm and vandalism damage q. Payment to building contractor for new building r. Interest incurred on building loan during construction s. Refund of premium on insurance policy (h) canceled after 11 months $3,000 285,000 55,000 15,500 5,000 4,000 * 28,000 50,000 7,000 12,000 800,000 * 6,000 33,000 12,000 3,000 2,000 8,000 * 700,000 34,000 500 * Item a. b. C. d. e. f. 9. h. i. j. k. I. m. n. 0. p. q. r. S. Account Land Land Land Land Land Land Building Building Land Other Accounts Other Accounts Land Improvements Land Improvements Land Improvements Other Accounts Other Accounts Building Building Building Land 69 352,500 X 69 69 69 Amount 3,000 285,000 X 15,500 5,000 4,000 X 28,000 50,000 7,000 12,000 800,000 X 6,000 33,000 12,000 500 X 2. Determine the amount debited to Land, Land Improvements, and Building. Land Improvements Building 48,000 3,000 2,000 8,000 X 700,000 34,000 841,500 XStep by Step Solution
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