E9.1 (LO 1) (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildin acquired for use in a business enterprise. The receipts are enclosed in parentheses. a. Money borrowed to pay building contractor (signed a note) b. Payment for construction from note proceeds c. Cost of land fill and clearing d. Delinquent real estate taxes on property assumed by purchaser e. Premium on 6-month insurance policy during construction f. Refund of 1-month insurance premium because construction completed early g. Architect's fee on building h. Cost of real estate purchased as a plant site (land $200,000 and building $50,000) i. Commission fee paid to real estate agency j. Installation of fences around property k. Cost of razing and removing building 1. Proceeds from salvage of demolished building m. Interest paid during construction on money borrowed for construction n. Cost of parking lots and driveways o. Cost of trees and shrubbery planted (permanent in nature) p. Excavation costs for new building $(275,000) 275,000 8,000 7,000 6,000 (1,000) 22,000 250,000 9,000 4,000 11,000 (5,000) 13,000 19,000 14,000 3,000 Instructions Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reporte parentheses. For any amounts entered in the Other Accounts column, also indicate the account title. Item Land Land Improvements Buildings Other Accounts
E9.1 (LO 1) (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildin acquired for use in a business enterprise. The receipts are enclosed in parentheses. a. Money borrowed to pay building contractor (signed a note) b. Payment for construction from note proceeds c. Cost of land fill and clearing d. Delinquent real estate taxes on property assumed by purchaser e. Premium on 6-month insurance policy during construction f. Refund of 1-month insurance premium because construction completed early g. Architect's fee on building h. Cost of real estate purchased as a plant site (land $200,000 and building $50,000) i. Commission fee paid to real estate agency j. Installation of fences around property k. Cost of razing and removing building 1. Proceeds from salvage of demolished building m. Interest paid during construction on money borrowed for construction n. Cost of parking lots and driveways o. Cost of trees and shrubbery planted (permanent in nature) p. Excavation costs for new building $(275,000) 275,000 8,000 7,000 6,000 (1,000) 22,000 250,000 9,000 4,000 11,000 (5,000) 13,000 19,000 14,000 3,000 Instructions Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reporte parentheses. For any amounts entered in the Other Accounts column, also indicate the account title. Item Land Land Improvements Buildings Other Accounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:E9.1 (LO 1) (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildings
acquired for use in a business enterprise. The receipts are enclosed in parentheses.
a. Money borrowed to pay building contractor (signed a note)
b. Payment for construction from note proceeds
c. Cost of land fill and clearing
d. Delinquent real estate taxes on property assumed by purchaser
e. Premium on 6-month insurance policy during construction
f.
Refund of 1-month insurance premium because construction
completed early
g. Architect's fee on building
h.
Cost of real estate purchased as a plant site (land $200,000 and
building $50,000)
i. Commission fee paid to real estate agency
j. Installation of fences around property
k. Cost of razing and removing building
1. Proceeds from salvage of demolished building
m. Interest paid during construction on money borrowed for
construction
n. Cost of parking lots and driveways
o. Cost of trees and shrubbery planted (permanent in nature)
p. Excavation costs for new building
$(275,000)
275,000
8,000
7,000
6,000
(1,000)
22,000
250,000
9,000
4,000
11,000
(5,000)
13,000
19,000
14,000
3,000
Instructions
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.
Item Land
Land Improvements
Buildings
Other Accounts
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education