Reference no: EM13176598

Rumblebuffin Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.

Debits

1. Cost of filing and grading the land                                                       $4,000

2. Full payment to building contractor                                       700,000

3. Real estate taxes on land paid for the current year                           5,000

4. Cost of real estate purchased as a plant site (land

building $45,000)                                                                            145,000

5. Excavation costs for new building                                                      35,000

6. Architect's fees on building plans                                                        10,000

7. Accrued real estate taxes paid at time of purchase

of real estate                                                                                        2,000

8. Cost of parking lots and driveways                                                     14,000

9. Cost of demolishing building to make land suitable

for construction of new building                                                 15,000

                                                                                                            $930,000

Credit

10. Proceeds from salvage of demolished building                   $     3,500

Instructions

Analyze the foregoing transactions using the following column headings. Insert the number of each transaction in the Item space, and insert the amounts in the appropriate columns. For amounts entered in the Other Accounts column, also indicate the account titles.