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On July 1, 2018 Dryor & Jekel, Inc. purchased land and incurred other costs relative to the construction of a new warehouse. A summary of
On July 1, 2018 Dryor & Jekel, Inc. purchased land and incurred other costs relative to the construction of a new warehouse. A summary of economic activities is listed below:
Purchase price | $185,000 |
Title Insurance | 1,500 |
Legal fees to purchase land | 1,000 |
Cost of razing old building on lot | 8,500 |
Proceeds of sale of salvageable materials | (1,200) |
Property taxes January 1,2018 - June 30, 2018 | 3,000 |
Cost of grading and filling building site | 9,000 |
Cost of building construction | 620,000 |
Interest on construction loan | 12,000 |
Cost of constructing new driveway | 8,000 |
Cost of parking lot and fencing | 12,000 |
Required:
List the assets affected by the above transactions and give the resulting balance of each asset account.
Show your calculations.
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