Question
Below are selected transactions for Wai Yan Company for 2022: 1. Purchased land for $900,000. 2. Paid $20,000 to demolish an old, unwanted building located
Below are selected transactions for Wai Yan Company for 2022:
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 related to the construction of a new building.
4. Paid $3,000 for excavation costs related to the construction of a new building.
5. Paid interest of $2,000 (new building in use) related to a loan used to finance the
construction of the new building.
6. Paid $4,000 for a parking lot.
7. Paid $1,500 to install and test new equipment prior to use.
8. P aid $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.
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