Question

PROBLEMS: SET A 9-1Ay Venable Company was organized on January 1. During the first year of operations, Deternine acquisition costs he tollowing plant asset expenditures and receipts were recorded in random order. of land and building. (LO 1) Debit $ 4,000 690,000 1. Cost of filling and grading the land 2. Full payment to building contractor 3. Real estate taxes on land paid for the current year 4. Cost of real estate purchased as a plant site (land $100,000 and 5,000 145,000 building $45,000) 5. Excavation costs for new building 6. Architect’s fees on building plans 7. Accrued real estate taxes paid at time of purchase of real estate 8. Cost of parking lots and driveways 9. Cost of demolishing building to make land suitable for construction 35,000 10,000 2,000 14,000 25,000 $930,000 of new building Credit s 3,500 10. Proceeds from salvage of demolished building Instructions Analyze the foregoing transactions using the following column headings. Insert the num ber of each transaction in the Item column, and then insert the amounts in the other Land $172,500 appropriate columns. For amounts entered in the Other Accounts column, also indicate Buildings $735,000 Totals the account titles. Item Land Buildings Other Accounts