Landscaping began constructio new plant thousand date, the company purchased a parcel of land for ¥180,700 in cash. In addition, it paid ¥2,600 in surveying costs and ¥5,200 for a title insurance policy. Ar old dwelling on the premises was demolished at a cost of ¥3,900, with ¥1,300 being received from the sale of materials. Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥39,000. The necessary building permits costing ¥3,900 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 2023 as follows. Date of Payment March 1 May 1 July 1 Amount of Payment ¥312,000 429,000 78,000
Landscaping began constructio new plant thousand date, the company purchased a parcel of land for ¥180,700 in cash. In addition, it paid ¥2,600 in surveying costs and ¥5,200 for a title insurance policy. Ar old dwelling on the premises was demolished at a cost of ¥3,900, with ¥1,300 being received from the sale of materials. Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥39,000. The necessary building permits costing ¥3,900 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 2023 as follows. Date of Payment March 1 May 1 July 1 Amount of Payment ¥312,000 429,000 78,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Larkspur Landscaping began construction of a new plant on December 1, 2022 (all amounts in thousands). On this date, the company
purchased a parcel of land for ¥180,700 in cash. In addition, it paid ¥2,600 in surveying costs and ¥5,200 for a title insurance policy. An
old dwelling on the premises was demolished at a cost of ¥3,900, with ¥1,300 being received from the sale of materials.
Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥39,000. The necessary building permits
costing ¥3,900 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 2023 as follows.
Date of Payment
March 1
May 1
July 1
The building was completed on July 1, 2023.
To finance construction of this plant, Larkspur borrowed ¥780,000 from the bank on December 1, 2022. Larkspur had no other
borrowings. The ¥780,000 was a 10-year loan bearing interest at 8%. Excess funds from the loan were invested during 2022 and
earned ¥2,600. During 2023, the excess funds from the loan earned ¥1,300.
Compute the balance in each of the following accounts at December 31, 2022, and December 31, 2023. (Round answers to O decimal
places, e.g. 5,275.)
a.
b.
C.
Amount of Payment
¥312,000
429,000
78,000
Land
Buildings
Interest Expense
December 31, 2022
191100
45500
0
K
K
December 31, 2023
191100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3605d48e-f9c5-4d5f-a899-babdd5d013d2%2Ff394dfc4-c16d-42a8-b592-c20f5092e37b%2F9vg66z_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Larkspur Landscaping began construction of a new plant on December 1, 2022 (all amounts in thousands). On this date, the company
purchased a parcel of land for ¥180,700 in cash. In addition, it paid ¥2,600 in surveying costs and ¥5,200 for a title insurance policy. An
old dwelling on the premises was demolished at a cost of ¥3,900, with ¥1,300 being received from the sale of materials.
Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥39,000. The necessary building permits
costing ¥3,900 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 2023 as follows.
Date of Payment
March 1
May 1
July 1
The building was completed on July 1, 2023.
To finance construction of this plant, Larkspur borrowed ¥780,000 from the bank on December 1, 2022. Larkspur had no other
borrowings. The ¥780,000 was a 10-year loan bearing interest at 8%. Excess funds from the loan were invested during 2022 and
earned ¥2,600. During 2023, the excess funds from the loan earned ¥1,300.
Compute the balance in each of the following accounts at December 31, 2022, and December 31, 2023. (Round answers to O decimal
places, e.g. 5,275.)
a.
b.
C.
Amount of Payment
¥312,000
429,000
78,000
Land
Buildings
Interest Expense
December 31, 2022
191100
45500
0
K
K
December 31, 2023
191100
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