Question

Exercises 533 EXERCISES provence 0-1 (201) (Acquis buildings acquired (a) Money borrowed ( Payment for Cost of land fill and clearing Acquisition C0515 Realty! The following expenditures and receipts are related to land, land red for use in a business enterprise. The receipts are enclosed in parentheses. orrowed to pay building contractor (signed a note) S(275,000) ent for construction from note proceeds 275,000 8,000 ent real estate taxes on property assumed by purchaser 7,000 um on 6-month insurance policy during construction 6,000 of 1-month insurance premium because construction completed early (1,000) 22,000 250,000 of real estate purchased as a plant site (land $200,000 and building $50,000) 9,000 (d) Delinquent real es lel Premium on 6 ( Refund of l-moi id) Architect's fee on building in Cost of real es Commis Installation of fend (5,000) 13,000 19,000 14,000 Commission fee paid to real estate agency llation of fences around property (k) Cost of razing and removing building 4,000 11,000 ( Proceeds from salvage of demolished building im Interest paid during construction on money borrowed for construction (n) Cost of parking lots and driveways (o) Cost of trees and shrubbery planted (permanent in nature) (p) Excavation costs for new building 3,000 Instructions 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. Item Land Land Improvements Buildings Other Accounts

Answer 1

Item	Land	Land Improvements	Buildings	Other Accounts
(a)				(275000)	Notes Payable
(b)			275000
(c)	8000
(d)	7000
(e)			6000
(f)			(1000)
(g)			22000
(h)	250000
(i)	9000
(j)		4000
(k)	11000
(l)	(5000)
(m)			13000
(n)		19000
(o)	14000
(p)			3000