Gibbs Manufacturing Co. was incorporated on 1/2/14 but was unable to begin manufacturing activities until 8/1/14 because new factory facilities were not completed until that date. The Land and Buildings account at 12/31/14 per the books was as follows:

Instructions

Determine the proper balances as of 12/31/14 for a separate land account and a separate buildings account. Use separate T-accounts (one for land and one for buildings) labeling all the relevant amounts and disclosing all computations.

Date 1/31/14 2/28/14 Amount $200,000 4,000 6,000 5,400 4,500 190,000 190,000 30,000 75,000 Item Land and dilapidated building Cost of removing building Legal fees Fire insurance premium paymen Special tax assessment for streets Partial payment of new building construction Final payment on bui General expenses Asset write-up lding construction 12/31/14