Question
Problem 9-1A Crane Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in
Problem 9-1A
Crane Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.
Debit
1.Excavation costs for new building$13,810
2.Architect?s fees on building plans34,440
3.Full payment to building contractor689,900
4.Cost of real estate purchased as a plant site (land $292,600and building $34,400)327,000
5.Cost of parking lots and driveways28,110
6.Accrued real estate taxes paid at time of purchase of real estate3,530
7.Installation cost of fences around property5,830
8.Cost of demolishing building to make land suitable for construction of new building31,400
9.Real estate taxes paid for the current year on land5,910
$1,139,930
Credit
10.Proceeds from salvage of demolished building$12,600
Analyze the transactions using the following table column headings. Enter the amounts in the appropriate columns. For amounts in the Other Accounts column, also indicate the account title.(If an amount fall into the Land and Buildings column then enter "Not Applicable" in the account title column. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Other Accounts
Item
Land
Building
Amounts
Account Title
1$
$
$
Property Tax Expense
Land Improvements
Prepaid Insurance
License Expense
Not Applicable
2
Prepaid Insurance
Property Tax Expense
License Expense
Not Applicable
Land Improvements
3
License Expense
Prepaid Insurance
Land Improvements
Not Applicable
Property Tax Expense
4
Land Improvements
Property Tax Expense
License Expense
Not Applicable
Prepaid Insurance
5
Land Improvements
Property Tax Expense
Prepaid Insurance
License Expense
Not Applicable
6
Property Tax Expense
Not Applicable
Prepaid Insurance
License Expense
Land Improvements
7
License Expense
Prepaid Insurance
Not Applicable
Property Tax Expense
Land Improvements
8
Land Improvements
Prepaid Insurance
Property Tax Expense
License Expense
Not Applicable
9
Land Improvements
Not Applicable
Property Tax Expense
Prepaid Insurance
License Expense
10
License Expense
Prepaid Insurance
Not Applicable
Land Improvements
Property Tax Expense
$
$
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
14th Edition
1119707110, 978-1119707110
