Solution

need general journal filled out.

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Points: Feedback Check My Work Explanation

CHART OF ACCOUNTS

Mawn Company

General Ledger

ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
170	Land and Buildings
171	Land
181	Building
185	Equipment
198	Accumulated Depreciation

LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

EQUITY
311	Common Stock
331	Retained Earnings

REVENUE
411	Sales Revenue
883	Gain on Construction

EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
894	Loss Due to Workers Injury
895	Loss Due to Modifications to Building
910	Income Tax Expense

need general journal filled out.

Mawn Company bought land and built a warehouse during 2016. It improperly debited the following related costs to an account titled Land and Buildings:

Land purchase	$22,000
Demolition of old building	3,000
Legal fees for land acquisition	1,500
Capitalized interest on loan for construction of building	2,900
Building construction	53,000
Assessment by city for sewer connectioncity is responsible for maintenance	1,200
Landscaping (expected to be permanent in nature)	3,500
Equipment purchased for excavation	18,800
Pro rata portion of fixed overhead incurred during construction of building	15,000
Insurance on building during construction	1,000
Profit on construction	12,000
Compensation for injury to construction worker (not covered by the insurance policy purchased by Mawn)	3,000
Modifications to building ordered by building inspectors (due to poor planning by Mawn)	7,500
Deliquent property taxes on land paid in 2016 (land was purchased during the year)	2,500

Required:

Prepare the correcting entries on December 31, to properly reclassify the preceding items.