Borod Ltd started business early in 2013. During its first 9 months, Borod Ltd acquired real estate for the construction of a building and other facilities. Operating equipment was purchased and installed, and the company began operating activities in October 2013. The company's accountant, who was not sure how to record some of the transactions, opened a Property ledger account and recorded debits and (credits) to this account as follows. (a) Cost of real estate purchased as a building site: 170 000 (b) Paid architect's fee for design of new building: 23 000 (c) Paid for demolition of old building on building site purchased in (a): 28 000 (d) Paid land tax on the real estate purchased as a building site in (a): 1700 (e) Paid excavation costs for the new building: 15000 (f) Made the first payment to the building contractor: 250000 (g) Paid for equipment to be installed in the new building: 148000 (h) Received from sale of salvaged materials from demolishing the old building: (6800) (i) Made final payment to the building contractor: 350000 (j) Paid interest on building loan during construction: 22000 (k) Paid freight on equipment purchased: 1900 (l) Paid installation costs of equipment: 4200 (m) Paid for repair of equipment damaged during installation: 2700 Property ledger account balance: 1009700 Required 1. Prepare a schedule with the following column headings. Analyse each transaction, enter the payment or receipt in the appropriate column, and total each column. Item no. Land - Land Improvements - Building -Manufacturing equipment - Other
Borod Ltd started business early in 2013. During its first 9 months, Borod Ltd acquired real estate for the construction of a building and other facilities. Operating equipment was purchased and installed, and the company began operating activities in October 2013. The company's accountant, who was not sure how to record some of the transactions, opened a Property ledger account and recorded debits and (credits) to this account as follows.
(a) Cost of real estate purchased as a building site: 170 000
(b) Paid architect's fee for design of new building: 23 000
(c) Paid for demolition of old building on building site purchased in (a): 28 000
(d) Paid land tax on the real estate purchased as a building site in (a): 1700
(e) Paid excavation costs for the new building: 15000
(f) Made the first payment to the building contractor: 250000
(g) Paid for equipment to be installed in the new building: 148000
(h) Received from sale of salvaged materials from demolishing the old building: (6800)
(i) Made final payment to the building contractor: 350000
(j) Paid interest on building loan during construction: 22000
(k) Paid freight on equipment purchased: 1900 (l) Paid installation costs of equipment: 4200
(m) Paid for repair of equipment damaged during installation: 2700
Property ledger account balance: 1009700
Required
1. Prepare a schedule with the following column headings.
Analyse each transaction, enter the payment or receipt in the appropriate column, and total each column.
Item no. Land - Land Improvements - Building -Manufacturing equipment - Other
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