The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(294,600 ) (b) Payment for construction from note proceeds 294,600 (c) Cost of land fill and clearing 10,250 (d) Delinquent real estate taxes on property assumed by purchaser 7,170 (e) Premium on 6-month insurance policy during construction 11,100 (f) Refund of 1-month insurance premium because construction completed early (1,850 ) (g) Architect’s fee on building 26,350 (h) Cost of real estate purchased as a plant site (land $208,600 and building $51,900) 260,500 (i) Commission fee paid to real estate agency 9,500 (j) Installation of fences around property 4,120 (k) Cost of razing and removing building 10,230 (l) Proceeds from salvage of demolished building (5,160 ) (m) Interest paid during construction on money borrowed for construction 13,980 (n) Cost of parking lots and driveways 19,980 (o) Cost of trees and shrubbery planted (permanent in nature) 12,900 (p) Excavation costs for new building 2,730 Identify each item by letter and list the items in columnar 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

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter1: The Role Of Accounting In Business

Section: Chapter Questions

Problem 1.3.1MBA: Return on assets The financial statements of The Hershey Company (HSY) are shown in Exhibits 6...

See similar textbooks

Related questions

Question

The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses.

(a)	Money borrowed to pay building contractor (signed a note)	$(294,600	)
(b)	Payment for construction from note proceeds	294,600
(c)	Cost of land fill and clearing	10,250
(d)	Delinquent real estate taxes on property assumed by purchaser	7,170
(e)	Premium on 6-month insurance policy during construction	11,100
(f)	Refund of 1-month insurance premium because construction completed early	(1,850	)
(g)	Architect’s fee on building	26,350
(h)	Cost of real estate purchased as a plant site (land $208,600 and building $51,900)	260,500
(i)	Commission fee paid to real estate agency	9,500
(j)	Installation of fences around property	4,120
(k)	Cost of razing and removing building	10,230
(l)	Proceeds from salvage of demolished building	(5,160	)
(m)	Interest paid during construction on money borrowed for construction	13,980
(n)	Cost of parking lots and driveways	19,980
(o)	Cost of trees and shrubbery planted (permanent in nature)	12,900
(p)	Excavation costs for new building	2,730

Identify each item by letter and list the items in columnar 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. (Enter receipt amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). If no entry is required in other accounts, select "No Entry" for the account titles.)

Land
Item
Land
Improvements
Building
Other Accounts
(a)
$
$
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
G)
(k)
%24
%24
%24

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions