Peete Company was organized on January 1. During the first year of operations, the following plant asset
Question:
Peete Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order
Determine acquisition costs of land and building.
Debit
1.
Excavation costs for new building$ 23,000
2.
Architect's fees on building plans33,000
3.
Full payment to building contractor640,000
4.
Cost of real estate purchased as a plant site (land $255,000 and building $25,000)280,000
5.
Cost of parking lots and driveways29,000
6.
Accrued real estate taxes paid at time of purchase of land3,170
7.
Installation cost of fences around property6,800
8.
Cost of demolishing building to make land suitable for construction of new building31,000
9.
Real estate taxes paid for the current year on land6,400
$1,052,370
Credit
10.
Proceeds from salvage of demolished building$ 12,000
Instructions
Analyze the transactions using the following table column headings. Enter the number of each transaction in the Item column, and enter the amounts in the appropriate columns. For amounts in the Other Accounts column, also indicate the account title.
Expert Answer:
