DAEBAK Landscaping began construction of a new plant on December 1, 2019. On this date, the company purchased a parcel of land for $556,000 in cash. In addition, it paid $8,000 in surveying costs and $16,000 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $12,000, with $4,000 being received from the sale of materials. Architectural plans were also formalized on December 1, 2019, when the architect was paid $120,000. The necessary building permits costing $12,000 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2020 as follows. Instructions: Compute the balance in each of the following accounts at December 31, 2019, and December 31, 2020. a. Land. b. Buildings. c. Interest Expense
DAEBAK Landscaping began construction of a new plant on December 1, 2019. On this date, the company purchased a parcel of land for $556,000 in cash. In addition, it paid $8,000 in surveying costs and $16,000 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $12,000, with $4,000 being received from the sale of materials.
Architectural plans were also formalized on December 1, 2019, when the architect was paid $120,000. The necessary building permits costing $12,000 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2020 as follows.
Instructions:
Compute the balance in each of the following accounts at December 31, 2019, and December
31, 2020.
a. Land.
b. Buildings.
c. Interest Expense
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