Exercise 10-1 The expenditures and receipts below are related to land, land impr

Question

Exercise 10-1

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

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.)

(a) Money borrowed to pay building contractor (signed a note) $(276,500 ) (b) Payment for construction from note proceeds 276,500 (c) Cost of land fill and clearing 11,220 (d) Delinquent real estate taxes on property assumed by purchaser 8,340 (e) Premium on 6-month insurance policy during construction 12,060 (f) Refund of 1-month insurance premium because construction completed early (2,010 ) (g) Architect’s fee on building 27,040 (h) Cost of real estate purchased as a plant site (land $206,800 and building $55,900) 262,700 (i) Commission fee paid to real estate agency 9,620 (j) Installation of fences around property 4,030 (k) Cost of razing and removing building 10,130 (l) Proceeds from salvage of demolished building (4,910 ) (m) Interest paid during construction on money borrowed for construction 13,700 (n) Cost of parking lots and driveways 17,690 (o) Cost of trees and shrubbery planted (permanent in nature) 14,080 (p) Excavation costs for new building 2,950

Explanation / Answer

a) Other Accounts – ($ 276500)Notes Payable

b) Buildings –                         $ 276500

c) Land – $ 11220

d) Land –                                $ 8340

e) Buildings – $ 12060

f) Buildings –                          $ (2010)

g) Building –                           $ 27040

h) Land –                                $ 262700

i) Land –                                 $ 9620

j) Land Improvement –           $ 4030

k) Land –                                $ 10130

l) Land –                                 $ (4910)

m) Buildings –                        $ 13700

n) Land Improvement –          $ 17690

o) Land –                                $ 14080

p) Buildings –                         $ 2950

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.