Bonita Landscaping began construction of a new plant on December 1, 2017. On this date, the company purchased a parcel of land for $145,200in cash. In addition, it paid $2,160in surveying costs and $4,320for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $960being received from the sale of materials.

Architectural plans were also formalized on December 1, 2017, when the architect was paid $42,000. The necessary building permits costing $3,360were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2018 as follows.

Date of Payment

Amount of Payment

March 1 $244,800

May 1 $334,800

July 1 $64,800

The building was completed on July 1, 2018.

To finance construction of this plant, Bonita borrowed $604,800from the bank on December 1, 2017. Bonita had no other borrowings. The $604,800was a10-year loan bearing interest at8%.

Compute the balance in each of the following accounts at December 31, 2017, and December 31, 2018.(Round answers to 0 decimal places, e.g. 5,275.)

December 31, 2017 & December 31, 2018

(a)Balance in Land Account

(b)Balance in Building

(c)Balance in Interest Expense