Garrison Company was organized on January 1. During the first year of operations, the following expenditures and receipts were recorded in random order in the account, Land, 1. 2 3 4. 5. 6. 7. 8. 9. 10. 11. Debits Cost of real estate purchased as a plant site (land and building). Accrued real estate taxes paid at the time of the purchase of the real estate. Cost of demolishing building to make land suitable for construction of a new building. Architect's fees on building plans. Excavation costs for new building. Cost of filling and grading the land. Insurance and taxes during construction of building. Cost of repairs to building under construction caused by a small fire. Interest paid during the year, of which $54,000 pertains to the construction period. Full payment to building contractor. Cost of parking lots and driveways $250,000 4,000 15,000 14.000 24,000 5,000 6.000 7,000 64,000 780,000 46,000
Garrison Company was organized on January 1. During the first year of operations, the following expenditures and receipts were recorded in random order in the account, Land, 1. 2 3 4. 5. 6. 7. 8. 9. 10. 11. Debits Cost of real estate purchased as a plant site (land and building). Accrued real estate taxes paid at the time of the purchase of the real estate. Cost of demolishing building to make land suitable for construction of a new building. Architect's fees on building plans. Excavation costs for new building. Cost of filling and grading the land. Insurance and taxes during construction of building. Cost of repairs to building under construction caused by a small fire. Interest paid during the year, of which $54,000 pertains to the construction period. Full payment to building contractor. Cost of parking lots and driveways $250,000 4,000 15,000 14.000 24,000 5,000 6.000 7,000 64,000 780,000 46,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Garrison Company was organized on January 1. During the first year of operations, the following expenditures and receipts were
recorded in random order in the account, Land.
1.
2
3.
4.
5.
6.
7.
8.
9.
10.
11.
12
Debits
Cost of real estate purchased as a plant site (land and building).
Accrued real estate taxes paid at the time of the purchase of the real estate.
Cost of demolishing building to make land suitable for construction of a new building.
Architect's fees on building plans.
Excavation costs for new building.
Cost of filling and grading the land.
Insurance and taxes during construction of building.
Cost of repairs to building under construction caused by a small fire.
Interest paid during the year, of which $54,000 pertains to the construction period
Full payment to building contractor.
Cost of parking lots and driveways
Real estate taxes paid for the current year on the land.
$250,000
4,000
15,000
14.000
24,000
5,000
6,000
7,000
64,000
780,000
46,000
4,000
Transcribed Image Text:Question 2 of 7
12. Real estate taxes paid for the current year on the land.
Total Debits
13.
14.
Item
1
2
3
Credits
Insurance proceeds for fire damage.
Proceeds from salvage of demolished building.
Total Credits
Analyze the foregoing transactions using the following tabular arrangement. Insert the amounts in the appropriate columns and selee
appropriate account title for transactions falling under other column. (Enter credit transactions with negative sign preceding the number
e.g.-45 or parentheses e.g. (45). Do not enter 0, leave cells blank when there is no entry/transaction.)
Land
Buildings
4,000
Other
$1,219,000
$3,000
3,500
$6,500
-/2 E
Account T
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