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Exercise 10-8 The following expenditures and receipts are related to land, land improvements, and buildings that were acquired for use in a business enterprise. The

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Exercise 10-8 The following expenditures and receipts are related to land, land improvements, and buildings that were acquired for use in a business enterprise. The receipts are in parentheses. 1. Money borrowed to pay a building contractor (signed a note), ($275,000) 2. A payment for building construction from note proceeds, $275,000 3 . The cost of landfill and clearing, $7,880 4. Delinquent real estate taxes on property, assumed by the purchaser, $6,830 5. A premium on a six-month insurance policy during construction, $5,560 6 . Refund of one month's insurance premium because construction was completed early, ($750) 7. An architect's fee on a building, $21,990 8. The cost of real estate purchased as a plant site (land $199,900, building $49,975), $249,875 9. A fee paid to a real estate agency for finding the property, $8,740 relating to the land purchase (see 8) 10. The installation of fences around a property, $3,730 11. The cost of razing (demolishing) and removing the building on the plant site (see item 8), $10,590 12. Proceeds from the salvage of the demolished building, ($4,830) 13. Interest paid during construction on money borrowed for construction, $12,870 14. The cost of parking lots and driveways, $18,700 15. The cost of trees that were planted (non-permanent in nature, to be replaced every 20 years), $13,570 16. Excavation costs for new building, $2,510 17. The recoverable GST on the excavation cost, $190 Identify each item by number and list the items in columnar form, as shown below. Using the column headings that follow, enter the amount under the column heading where it would be recorded. For any amounts that should be entered in the Other Accounts column, also indicate the account title. (Show the receipts in using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000). If there is no entry in other accounts, select "No Entry" for the account titles.)

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