Problem 9 1A Sheridan 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 Cost of filling and grading the land $ 3,000 2 Full payment to building contractor 686,500 3 Real estate taxes on land paid for the current year 6,000 4 Cost of real estate purchased as a plant site (land $112,500 and building $40,000) 152,500 5 Excavation costs for new building 38,500 6 Architects fees on building plans 13,500 7 Accrued real estate taxes paid at time of purchase of real estate 3,000 8 Cost of parking lots and driveways 13,500 9 Cost of demolishing building to make land suitable for construction of new building 24,500 $941,000 Credit 10 Proceeds from salvage of demolished building $ 3,000 a Analyze the foregoing transactions using the following column headings Insert the amounts in the appropriate columns For amounts entered in the Other Accounts column, also indicate the account titles (If an amount reduces the account balance then enter with a negative sign preceding the number, e g 15,000 or parenthesis, e g (15,000) )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 11, 2024

Problem 9-1A Sheridan 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

Sheridan 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.	Cost of filling and grading the land	$ 3,000
2.	Full payment to building contractor	686,500
3.	Real estate taxes on land paid for the current year	6,000
4.	Cost of real estate purchased as a plant site (land $112,500 and building $40,000)	152,500
5.	Excavation costs for new building	38,500
6.	Architects fees on building plans	13,500
7.	Accrued real estate taxes paid at time of purchase of real estate	3,000
8.	Cost of parking lots and driveways	13,500
9.	Cost of demolishing building to make land suitable for construction of new building	24,500
		$941,000
Credit
10.	Proceeds from salvage of demolished building	$ 3,000

a. Analyze the foregoing transactions using the following column headings. Insert the amounts in the appropriate columns. For amounts entered in the Other Accounts column, also indicate the account titles. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)