The expenditure and receipts below are related to land, land, improvements, and

buildings acquired for use in a business. The receipts are enclosed in parentheses.

a$.$ Money borrowed to pay building contractor $($signed a note$)$ $$$275,000$

b$.$ Payment for construction from note proceeds $$275,000$

c$.$ Cost of land fill and clearing $$10,000$

d$.$ Delinquent real state taxes on property assumed by purchaser $$$7,000$

e$.$ Premium on $6-$months insurance policy during construction $$6,000$

Refund of $1-$month insurance premium because construction

f$.$ completed early

$-$$$1,000$

g$.$ Architect's fee on building

$$25,000$

Cost of real state purchased as a plant site $($land $$200,000$ and

h$.$ building $$50,000)$ $$250,000$

i$.$ Commission fee paid to real state agency $$9,000$

j$.$ Installation of fences around property $$4,000$

k$.$ Cost of razing and removing building $$11,000$

I. Proceeds from residual value of demolished building $$$5,000$

Borrowing costs incurred during construction on money

m$.$ borrowed for construction $$13,000$

n$.$ Cost of parking lots and driveways $$19,000$

o$.$ Cost of trees and shrubbery planted $($permanent in nature$)$ $$14,000$

$p.$ excavation costs for new building $$3,000$

Instructions: Identify each item by letter and list the items in columns form, using the

headings shown below. All receipt amounts should be reported in parentheses. For any

amounts entered in the Other Accounts column, also indicate the account title.

OPQ Inc. operates a retail computer store. To improve delivery services to

customers, the company purchases four new trucks on April $1,2022.$ The terms of

acquisition for each truck are described below.

a$.$ Truck #$1$ has a list price of $$15,000$ and is acquired for a cash payment of

$$13,900$

b$.$ Truck #$2$ has a list price of $$20,000$ and is acquired for a down payment of

$$2,000$ cash and a zero interest$-$bearing note with a face amount of

$$18,000.$ The note is a due April $1,2023.$ OPQ Inc. would normally have to

pay interest at a rate of $10\%$ for such a borrowing, and the dealership has

an incremental borrowing rate of $8\%.$

c$.$ Truck #$3$ has a list price of $$16,000.$ It is acquired in exchange for a

computer system that OPQ Inc. carries in inventory. The computer system

cost $$12,000$ and is normally sold by OPQ Inc. for $$15,200.$ Company uses a

perpetual inventory system.

d$.$ Truck #$4$ has a list price of $$14,000.$ It is acquired in exchange for $1,000$

ordinary shares in OPE Inc. The chares have a par value per share of $$10$

and a market price of $$13$ per share.

Instructions: Prepare the appropriate entries for the foregoing transactions $($round

computations to the nearest dollar$)$