QUESTION 1
On July 1, 2024, Bart & Lisa Incorporated purchased land and incurred other costs relative to the construction of a new warehouse. A summary of economic activities is listed below:
Purchase price	$185,000
Title insurance	$1,500
Legal fees to purchase land	$1,000
Cost of razing old building on lot	8,500
Proceeds from sale of salvageable materials	-1,200
Property taxes, January 1, 2024June 30, 2024	3,000
Cost of grading and filling building site	9,000
Cost of building construction	620,000
Interest on construction loan	12,000
Cost of constructing driveway	8,000
Cost of parking lot and fencing	12,000
Required: Using the table below, indicate the accounts that would be affected by the above transactions and the resulting balance in each account. Apply the interest on the construction loan to the cost of the building only.

\begin{tabular}{|l|l|l|l|} \hline & & & Land Improvement Land \\ \hline Purchase price & Building & \\ \hline Title insurance & & & \\ \hline Legal fees to purchase land & & & \\ \hline Cost of razing old building on lot & & & \\ \hline Proceeds from sale of salvageable materials & & & \\ \hline Property taxes, January 1, 2024-June 30, 2024 & & & \\ \hline Cost of grading and filling building site & & & \\ \hline Cost of building construction & & & \\ \hline Interest on construction loan & & & \\ \hline Cost of constructing driveway & & & \\ \hline Cost of parking lot and fencing & & & \\ \hline & & & \\ \hline \end{tabular}