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Novak Landscaping began construction of a new plant on December 1, 2025. On this date, the company purchased a parcel of land for $404,300 in
Novak Landscaping began construction of a new plant on December 1, 2025. On this date, the company purchased a parcel of land for $404,300 in cash. In addition, it paid $5,800 in surveying costs and $11,600 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $8,700, with $2,900 being received from the sale of materials. Architectural plans were also formalized on December 1,2025 , when the architect was paid $87,000. The necessary building permits costing $8,700 were 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 2026 as follows. The building was completed on July 1,2026 , To finance construction of this plant, Novak borrowed $1,740,000 from the bank on December 1,2025. Novak had no other borrowings. The $1,740,000 was a 10-year loan bearing interest at 10%, Compute the balance in each of the following accounts at December 31, 2025, and December 31,2026
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