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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

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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 $138,000 in cash. In addition, it paid $1,920 in surveying costs and $4,560 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $720 being received from the sale of materials Architectural plans were also formalized on December 1, 2017, when the architect was paid $38,400. 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. May 1 The building was completed on July 1, 2018. To finance construction of this plant, Ivanhoe borrowed $603,600 from the bank on December 1, 2017. Ivanhoe had no other borrowings. The $603,600 was a 10-year loan bearing interest at 10%. Compute the balance in each of the following accounts at December 31, 2017, and December 31, 2018. (Round answers to o decimal places, e.g. 5,275.) December 31, 2017 December 31. (e) Bir 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 $138,000 in cash. In addition, it paid $1,920 in surveying costs and $4,560 for a title Insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $720 being received from the sale of materials Architectural plans were also formalized on December 1, 2017, when the architect was paid $38,400. 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 March 1 May 1 July Amount of Payment $264,000 333.600 67,200 The building was completed on July 1, 2018 To finance construction of this plant, Ivanhoe borrowed $603.600 from the back on December 1, 2017. Ivanhoe had no other borrowings. The $603,600 was a 10-year loan bearing interest at 104 Compute the balance in each of the following accounts December 31, 2017 and December 2010 decimal .223 December 31, 2017 December 31, 2018 (a) Balance in Land Account (b) Balance in Building (c) Balance in interest Expense

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