Reference no: EM132172852
Problem - The expenditures and receipts below are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses.
Money borrowed to pay building contractor (signed a note) $(290,400)
Payment for construction from note proceeds 290,400
Cost of land fill and clearing 11,780
Delinquent real estate taxes on property assumed by purchaser 7,360
Premium on 6-month insurance policy during construction 11,340
Refund of 1-month insurance premium because construction completed early (1,890)
Architect's fee on building 25,930
Cost of real estate purchased as a plant site (land $ 207,300 and building $57,700) 265,000
Commission fee paid to real estate agency 9,860
Installation of fences around property 3,860
Cost of razing and removing building 10,800
Proceeds from salvage of demolished building (4,910)
Interest paid during construction on money borrowed for construction 13,290
Cost of parking lots and driveways 17,150
Cost of trees and shrubbery planted (permanent in nature) 13,360
Excavation costs for new building 2,710
Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title.