Garrison Company was organized on January 1. During the first year of operations, the following expenditures and receipts were recorded in random order in the account, Land.DebitsCost of real estate purchased as a plant site (land and building). $250,000Accrued real estate taxes paid at the time of the purchase of the real estate. 4,000Cost of demolishing building to make land suitable for construction of a new building. 15,000Architect's fees on building plans. 14,000Excavation costs for new building. 24,000Cost of filling and grading the land. 5,000Insurance and taxes during construction of building. 6,000Cost of repairs to building under construction caused by a small fire. 7,000Interest paid during the year, of which $54,000 pertains to the construction period. 64,000Full payment to building contractor. 780,000Cost of parking lots and driveways. 46,000Real estate taxes paid for the current year on the land. 4,000Total Debits. $1,219,000Insurance proceeds for fire damage. $3,000Proceeds from salvage of demolished building. 3,500Total Credits. $6,500 Analyze the foregoing transactions using the following tabular arrangement. Insert the amounts in the appropriate columns and select appropriate account title for transactions falling under other column. (Enter credit transactions with negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not enter 0, leave cells blank when there is no entry/transaction.) Analyze the foregoing transactions using the following tabular arrangement. Insert the amounts in the appropriate columns and select appropriate account title for transactions falling under otthere is no entry/transaction.)Item1234LO567891011121314TotalsLALandLAtABuildings$OtherAccount Title◄► Garrison Company was organized on January 1. During the first year of operations, the following expenditures and receipts wererecorded in random order in the account, Land.1.2.3.4.5.6.7.8.9.10.11.12.13.14.Cost of real estate purchased as a plant site (land and building).Accrued real estate taxes paid at the time of the purchase of the real estate.Cost of demolishing building to make land suitable for construction of a new building.Architect's fees on building plans.Excavation costs for new building.Cost of filling and grading the land.Insurance and taxes during construction of building.Cost of repairs to building under construction caused by a small fire.Interest paid during the year, of which $54,000 pertains to the construction period.Full payment to building contractor.Cost of parking lots and driveways.Real estate taxes paid for the current year on the land.Total DebitsDebitsTotal CreditsCreditsInsurance proceeds for fire damage.Proceeds from salvage of demolished building.$250,0004,00015,00014,00024,0005,0006,0007,00064,000780,00046,0004,000$1,219,000$3,0003,500$6,500Analyze the foregoing transactions using the following tabular arrangement. Insert the amounts in the appropriate columns and selectappropriate account title for transactions falling under other column. (Enter credit transactions with negative sign preceding thenumber e.g. -45 or parentheses e.g. (45). Do not enter 0, leave cells blank when there is no entry/transaction.)

Analysis of items :— Plant site means location of plant or building. Purchase of plant site is…

Answered: Analyze the foregoing transactions…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.1DC

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Garrison Company was organized on January 1. During the first year of operations, the following expenditures and receipts were recorded in random order in the account, Land.

Debits

Cost of real estate purchased as a plant site (land and building). $250,000
Accrued real estate taxes paid at the time of the purchase of the real estate. 4,000
Cost of demolishing building to make land suitable for construction of a new building. 15,000
Architect's fees on building plans. 14,000
Excavation costs for new building. 24,000
Cost of filling and grading the land. 5,000
Insurance and taxes during construction of building. 6,000
Cost of repairs to building under construction caused by a small fire. 7,000
Interest paid during the year, of which $54,000 pertains to the construction period. 64,000
Full payment to building contractor. 780,000
Cost of parking lots and driveways. 46,000
Real estate taxes paid for the current year on the land. 4,000

Total Debits. $1,219,000
1. Insurance proceeds for fire damage. $3,000
2. Proceeds from salvage of demolished building. 3,500
  
  Total Credits. $6,500
Analyze the foregoing transactions using the following tabular arrangement. Insert the amounts in the appropriate columns and select appropriate account title for transactions falling under other column. (Enter credit transactions with negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not enter 0, leave cells blank when there is no entry/transaction.)

Analyze the foregoing transactions using the following tabular arrangement. Insert the amounts in the appropriate columns and select appropriate account title for transactions falling under ot
there is no entry/transaction.)
Item
1
2
3
4
LO
5
6
7
8
9
10
11
12
13
14
Totals
LA
Land
LA
tA
Buildings
$
Other
Account Title
◄►

Garrison Company was organized on January 1. During the first year of operations, the following expenditures and receipts were
recorded in random order in the account, Land.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Cost of real estate purchased as a plant site (land and building).
Accrued real estate taxes paid at the time of the purchase of the real estate.
Cost of demolishing building to make land suitable for construction of a new building.
Architect's fees on building plans.
Excavation costs for new building.
Cost of filling and grading the land.
Insurance and taxes during construction of building.
Cost of repairs to building under construction caused by a small fire.
Interest paid during the year, of which $54,000 pertains to the construction period.
Full payment to building contractor.
Cost of parking lots and driveways.
Real estate taxes paid for the current year on the land.
Total Debits
Debits
Total Credits
Credits
Insurance proceeds for fire damage.
Proceeds from salvage of demolished building.
$250,000
4,000
15,000
14,000
24,000
5,000
6,000
7,000
64,000
780,000
46,000
4,000
$1,219,000
$3,000
3,500
$6,500
Analyze the foregoing transactions using the following tabular arrangement. Insert the amounts in the appropriate columns and select
appropriate account title for transactions falling under other column. (Enter credit transactions with negative sign preceding the
number e.g. -45 or parentheses e.g. (45). Do not enter 0, leave cells blank when there is no entry/transaction.)

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