Grieg Landscaping began construction of a new plant on December 1, 2014. On this date, the company purchased a parcel of land for $147,480 in cash. In addition, it paid $2,520 in surveying costs and $4,680 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $840 being received from the sale of materials. Architectural plans were also formalized on December 1, 2014, when the architect was paid $39,360. The necessary building permits costing $3,360 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 as follows. Date of Payment March 1 May 1 July 1 Amount of Payment $253,920 341,640 65,640 The building was completed on July 1, 2015. To finance construction of this plant, Grieg borrowed $609,000 from the bank on December 1, 2014. Grieg had no other borrowings. The $609,000 was a 10-year loan bearing interest at 9%. Compute the balance in each of the following accounts at December 31, 2014, and December 31, 2015. (Round answers to 0 decimal places, e.g. 5,275.) (a) Balance in Land Account (b) Balance in Building (c) Balance in Interest Expense X 2014 157200 2015 157200

Grieg Landscaping began construction of a new plant on December 1, 2014. On this date, the company purchased a parcel of land for $147,480 in cash. In addition, it paid $2,520 in surveying costs and $4,680 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $840 being received from the sale of materials. Architectural plans were also formalized on December 1, 2014, when the architect was paid $39,360. The necessary building permits costing $3,360 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 as follows. Date of Payment March 1 May 1 July 1 Amount of Payment $253,920 341,640 65,640 The building was completed on July 1, 2015. To finance construction of this plant, Grieg borrowed $609,000 from the bank on December 1, 2014. Grieg had no other borrowings. The $609,000 was a 10-year loan bearing interest at 9%. Compute the balance in each of the following accounts at December 31, 2014, and December 31, 2015. (Round answers to 0 decimal places, e.g. 5,275.) (a) Balance in Land Account (b) Balance in Building (c) Balance in Interest Expense X 2014 157200 2015 157200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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