Marigold 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 ¥172,360 in cash. In addition, it paid ¥2,480 in surveying costs and ¥4,960 for a title insurance policy. An old dwelling on the premises was demolished at a cost of ¥3,720, with ¥1,240 being received from the sale of materials. Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥37,200. The necessary building permits costing ¥3,720 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, Marigold borrowed ¥744,000 from the bank on December 1, 2022. Marigold had no other borrowings. The ¥744,000 was a 10-year loan bearing interest at 8%. Excess funds from the loan were invested during 2022 and earned ¥2,480. During 2023, the excess funds from the loan earned ¥1,240. 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 ¥297,600 409,200 74,400 Land Buildings Interest Expense December 31, 2022 K K K December 31, 2023
Marigold 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 ¥172,360 in cash. In addition, it paid ¥2,480 in surveying costs and ¥4,960 for a title insurance policy. An old dwelling on the premises was demolished at a cost of ¥3,720, with ¥1,240 being received from the sale of materials. Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥37,200. The necessary building permits costing ¥3,720 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, Marigold borrowed ¥744,000 from the bank on December 1, 2022. Marigold had no other borrowings. The ¥744,000 was a 10-year loan bearing interest at 8%. Excess funds from the loan were invested during 2022 and earned ¥2,480. During 2023, the excess funds from the loan earned ¥1,240. 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 ¥297,600 409,200 74,400 Land Buildings Interest Expense December 31, 2022 K K K December 31, 2023
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Marigold 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 ¥172,360 in cash. In addition, it paid ¥2,480 in surveying costs and ¥4,960 for a title insurance policy. An
old dwelling on the premises was demolished at a cost of ¥3,720, with ¥1,240 being received from the sale of materials.
Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥37,200. The necessary building permits
costing ¥3,720 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, Marigold borrowed ¥744,000 from the bank on December 1, 2022. Marigold had no other
borrowings. The ¥744,000 was a 10-year loan bearing interest at 8%. Excess funds from the loan were invested during 2022 and
earned ¥2,480. During 2023, the excess funds from the loan earned ¥1,240.
a.
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.)
b.
C.
Amount of Payment
¥297,600
409,200
Land
Buildings
74,400
Interest Expense
¥
December 31, 2022
K
SA
34
December 31, 2023
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