PR $9-1$A Allocating payments and receipts to fixed asset accounts

Obj. $1$

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

b$.$ Cost of real estate acquired as a plant site: Land.

Building $($to be demolished$)$

c$.$ 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.

g$.$ Architect's and engineer's fees for plans and supervision

h$.$ Premium on one$-$year insurance policy during construction.

i$.$ Cost of filling and grading land

j$.$ Money borrowed to pay building contractor.

k$.$ 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.

o$.$ Cost of repairing vandalism damage during construction

p$.$ Proceeds from insurance company for windstorm and vandalism damage

q$.$ Payment to building contractor for new building.

$2,500$

$285,000$

$55,000$

$15,500$

$5,{000}^{**}$

$4,{000}^{**}$

$29,000$

$60,000$

$6,000$

$12,000$

$900,{000}^{**}$

$5,500$

$32,000$

$11,000$

$2,000$

$2,500$

$7,{500}^{**}$

$800,000$

$34,500$

${500}^{**}$

Instructions

Assign each payment and receipt to Land $($unlimited life$),$ Land Improvements $($limited life$),$ Building, or Other Accounts. Indicate receipts by an asterisk. Identify each item by letter and list the amounts in columnar form, as follows:

$\backslash$table$[[$Item Land,,$],[$Improvements$,$Building,$\backslash$table$[[$Other$],[$Accounts$]]]]$

Determine the amount debited to Land, Land Improvements, and Building.