Reference no: EM132326942

Question

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

Debit

1.Excavation costs for new building $13,545

2.Architect's fees on building plans 41,540

3.Full payment to building contractor 667,100

4.Cost of real estate purchased as a plant site (land $285,200 and building $32,700) 317,900

5.Cost of parking lots and driveways 37,530

6.Accrued real estate taxes paid at time of purchase of real estate 3,710

7.Installation cost of fences around property 6,240

8.Cost of demolishing building to make land suitable for construction of new building 31,700

9.Real estate taxes paid for the current year on land 6,790

$1,126,055

Credit

10.Proceeds from salvage of demolished building$ 12,800

Analyze the transactions by placing each item and its amount in its designated Land, Building, or Other Account column. If it falls into other account, indicate the account title, (ex. prepaid insurance, license expense, etc.) Enter the amounts in the appropriate columns.