Question

Allocating Payments and Receipts to Fixed Asset Accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search b. Cost of real estate acquired as a plant site: Land $2,900 303,600 28,800 17,100 Building (to be demolished) c. Finder's fee paid to real estate agency d. Delinquent real estate taxes on property, assumed by purchaser 4,800 e. Architect's and engineer's fees for plans for new building f. Cost of removing building purchased with land in (b) 2,800 11,400 41,700 * g. Proceeds from sale of salvage materials from old building h. Cost of filling and grading land 4,000 16,700 711,900 * i. Premium on one-year insurance policy during construction j. Money borrowed to pay building contractor k. Special assessment paid to city for extension of water main to the property I. Cost of repairing windstorm damage during construction 5,200 14,400 m. Cost of repairing vandalism damage during construction 8,600 n. Cost of trees and shrubbery planted 1,000 0. Cost of paving parking lot to be used by customers 2,400 5,700 p. Interest incurred on building loan during construction 9. Proceeds from insurance company for windstorm and vandalism damage 35,700 * r. Payment to building contractor for new building 759,000 s. Refund of premium on insurance policy (i) canceled after 11 months 333 *
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Answer 1

Item Land Land Improvements Building Other Accounts $2,900 $332,400 $17,100 $4,800 $2,800 $11,400 ($41,700) $4,000 $16,700 ($711,900) $5,200 $14,400 $8,600 $1,000 $2,400 $5,700 ($35,700) $759.000 ($333) Debited Amounts $336,100 $3,400 $783,867