Below are selected transactions for Oriel Company for 2020: . 3. 1. Purchased land for $900,000. 2. Paid $20,000 to demolish an old, unwanted building located on the land. 3. Paid $2,000 for architect fees. 4. Paid $3,000 for excavation costs. Itin 5. Paid interest of $2,000 (building ready for use) related to a loan used to finance the construction of a new building. 6. Paid $4,000 for a parking lot. 7. Paid $1,500 to install and test new equipment prior to use. 8. Paid $2,500 to paint office walls in the new building (once in use). 9. Paid $8,000 to install a new motor in a delivery truck. 10. Paid $15,000 for fences around the new building. Instructions: Determine for each of the above items if they should be recorded in either the Land, Buildings, Land Improvements, or Equipment account. If instead the item should be Expensed, indicate so. QUESTION #3 - ANSWER SHEET 1. 2. 3. I 5. 6. 7. 8. 9. 10 ould a) Lul Company purchased equipment on January 1, 2013 for $80,000 and estimated an $8,000 residual value at the end of the equipment's 10-year useful life. At the December 31, 2019 year-end, there was $50,400 in the Accumulated Depreciation account (after adjustment) for this equipment using the straight-line method of depreciation. On March 31, 2020 the equipment was sold for $15,000. Instructions: Prepare the necessary journal entries to record the sale of the equipment on March 31, 2020. (4 marks) b) On January 1, 2020. Gagne Co. exchanges an old delivery truck for a new truck. The old truck originally cost $45,000 in 2016 and has a current fair value of $4,750. The Accumulated Depreciation account related to the old delivery truck was $36,250 on the date of exchange. The new truck has a list price of $35,000. The dealer gave Gagne Co. a $10.000 trade-in allowance. Instructions: Prepare the journal entry to record the exchange of the delivery truck on January 1, 2020. (5 marks) Debit Credit Date Accounts