Reference no: EM132495749

Question - Kendrick Company was organized on January 1. During the first year of operations, the following expenditures and receipts were recorded in random order.

Debits -

1. Cost of real estate purchased as a plant site (land and building) $130,000

2. Accrued real estate taxes paid at the time of the purchase of the real estate 4,000

3. Cost of demolishing building to make land suitable for construction of a new building 10,000

4. Architect's fees on building plans 14,000

5. Excavation costs for new building 30,000

6. Cost of filling and grading the land 5,000

7. Insurance and taxes during construction of building 6,000

8. Cost of repairs caused by a small fire shortly after completion of building 7,000

9. Interest paid during the year, of which $45,000 pertains to the construction period 74,000

10. Full payment to building contractor 955,000

11. Cost of parking lots and driveways 36,000

12. Real estate taxes paid for the current year on the land 4,000

Total Debits $1,275,000

Credits

13. Proceeds from salvage of demolished building 3,500

Total Credits $6,500

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.