Below are transactions for Oriel Company, determine if each item should be capitalized (C) or expensed (E).

1. Purchased land for $900,000.Answer

2. Paid $20,000 to demolish building located on land.Answer

3. Paid $3,000 for building permit.Answer

4. Paid $2,000 for architect fees.Answer

5. Paid $3,000 for excavation costs.Answer

6. Paid interest of $22,000 during construction of new building.Answer

7. Paid $960,000 to complete the building.Answer

8. Paid $30,000 to pave the parking lot.Answer

9. Paid $4,000 for underground sprinkler.Answer

10. Ordered new equipment, paid $30,000.Answer

11. Paid $1,500 to install and test new equipment.Answer

12. Paid $2,000 to repair equipment.Answer

What is the balance in the land account and the building account? i) Land account: Answer:

ii) Land Improvement account: Answer:

iiI) Builidng account: Answer: 960000

Iv) Equipment account: Answer: