Problem 10-6

Ivanhoe Landscaping began construction of a new plant on December 1, 2017. On this date, the company purchased a parcel of land for $145,200 in cash. In addition, it paid $2,160 in surveying costs and $4,320 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $960 being received from the sale of materials. Architectural plans were also formalized on December 1, 2017, when the architect was paid $42,000. The necessary building permits costing $3,360 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 2018 as follows.

Date of Payment		Amount of Payment
March 1		$244,800
May 1		334,800
July 1		64,800

The building was completed on July 1, 2018. To finance construction of this plant, Ivanhoe borrowed $604,800 from the bank on December 1, 2017. Ivanhoe had no other borrowings. The $604,800 was a 10-year loan bearing interest at 8%. Compute the balance in each of the following accounts at December 31, 2017, and December 31, 2018.