Question

Pharoah Company was organized on January 1 During the first year of operations, the following expenditures and receipts were recorded in random order. Debits Cost of real estate purchased as a plant site (land and building) 1. $132,000 2. Accrued real estate taxes paid at the time of the purchase of the real estate 6,500 10,600 3. Cost of demolishing building to make land suitable for construction of a new building Architect's fees on building plans 15,400 4. 5. Excavation costs for new building 30,000 6. Cost of filling and grading the land 9.500 7. Insurance and taxes during construction of building 6,600 8 Cost of repairs caused by a small fire shortly after completion of building 7,900 Interest paid during the year, of which $54,000 pertains to the construction period 9. 75,000 Full payment to building contractor 10. 963,000 11 Cost of parking lots and driveways 42,800 12. Real estate taxes paid for the current year on the land 6,700 $1,306,000 Total Debits Credits 13. Proceeds from salvage of demolished building $4,600 $4,600 Total Credits 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 eg. -45 or parentheses e.g. (45)) Buildings Account Title Item Land Other 132.000 132,000 2 3 4 6 7 8 9 10 11 12 14 Totals

Answer 1

Item	Land	Buildings	Other	Acccount title
1	132,000.00
2	6,500.00
3	10,600.00
4		15,400.00
5		30,000.00
6	9,500.00
7		6,600.00
8			7,900.00	Fire Loss
9		54,000.00	21,000.00	Interest Expense
10		963,000.00
11			42,800.00	Land Improvements
12			6,700.00	Taxes Expense
13	-      4,600.00
Totals	154,000.00	1,069,000.00	78,400.00