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Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk a. Fee paid to attorney for title search $3,000 b. Cost of real estate acquired as a plant site: Land 290,000 50,000 16,000 6,000 4,000. Building (to be demolished) e Delinquent real estate taxes on property, assumed by purchaser d. Cost of razing and removing building acquired in (b) e. Proceeds from sale of salvage materials from old building t. Special assessment paid to city for extension of water main to the property 9. Architect's and engineer's fees for plans and supervision. h. Premium on 1-year insurance policy during construction Cost of filling and grading land Money borrowed to pay building contractor & Cost of repairing windstorm damage during construction L. Cost of paving parking lot to be used by customers m. Cost of trees and shrubbery planted n. Cost of floodlights installed on parking lot 9. Cost of repairing vandalism damage during construction p. Proceeds from insurance company for windstorm and vandalism damage Payment to building contractor for new building Interest incurred on building loan during construction Refund of premium on insurance policy (h) canceled after 11 months Dedi 28,000 70,000 6,000 13,000 800,000. 6,000 31,000 11,000 2,000 2,500 8,000. 800,000 34,500 400 1. Asign each payment and recerpt to Land (unlimited e), Land Improvements (imited ife, Bulding, or Other Accounts Choose the act account from the dropdows for each Them A $ Y P . * " Account Land Land Land Improvements Building " Other Accounts Land Improvements L (and Impressments F Other Accounts Sant Imeremments .. Lantingcomments Rutins to Welding 1. Den the Land X A ^ ( AD Amount 3,000 290,000 16,800 6,000 4,000 18,000 70,000 6.000 13,000 400,000 6,000 31.000 11,000 1.000 3.500 800,000 34,000 Land, Lands, and Budg Land Improvements 131.000 x 816.400 1. Land unda parte des We the affect in the water and cheet the staff and grading and of 813000 103 ways and the Land Land 20th Expreciation expense would be exerstated, land ingreements would be everstated and net income would be everstated Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search - $3,000 b. Cost of real estate acquired as a plant site: Land Building (to be demolished) & Delinquent real estate taxes on property, assumed by purchaser d. Cost of razing and removing building acquired in (b) e. Proceeds from sale of salvage materials from old building f. Special assessment paid to city for extension of water main to the property 9. Architect's and engineer's fees for plans and supervision h. Premium on 1-year insurance policy during construction Cost of filling and grading land Money borrowed to pay building contractor k. Cost of repairing windstorm damage during construction 1 Cost of paving parking lot to be used by customers m. Cost of trees and shrubbery planted n. Cost of floodlights installed on parking lot o. Cost of repairing vandalism damage during construction p. Proceeds from insurance company for windstorm and vandalism damage Item a. 9. Payment to building contractor for new building Interest incurred on building loan during construction s. Refund of premium on insurance policy (h) canceled after 11 months Required: 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and ente b Account Land Land Land Land Improvements V X Amount 3,000 290,000 X 16,800 290,000 50,000 16,000 6,000 4,000. 6,000 28,000 70,000 6,000 13,000 800,000. 6,000 31,000 11,000 2,000 2,500 8,000. 800,000 34,500 400- > Item a. b. C. d. e. f. 9. h. 1. 1. k. 0. P. Account r. Land S. Land Land Land Improvements Building -X Other Accounts Land Improvements Building L Land Improvements m. Land Improvements n. Land Improvements Land Improvements Other Accounts Building -X X -X Xx $ $ X $ X $ $ Amount 3,000 290,000 X 16,800 X 6,000 -4,000 28,000 70,000 Building -X Building Building Building Building 2. Determine the amount debited to Land, Land Improvements, and Building. Land Land Improvements Building 836,600 X 309,800 X 133,000 X 3. Land used as a plant site does not lose its ability to provide services; thus, it is not 6,000 13,000 -800,000 6,000 31,000 11,000 2,000 2,500 -8,000 800,000 34,500 -400 deprecial 4. What would be the effect on the income statement and balance sheet if the cost of filling and grading land of $13,01 Depreciation expense would be overstated, land improvements would be overstated and net income would