Novak 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 ¥119,540 in cash. In addition, it paid ¥1,720 in surveying costs and ¥3,440 for a title insurance policy. An old dwelling on the premises was demolished at a cost of ¥2,580, with ¥860 being received from the sale of materials. Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥25,800. The necessary building permits costing ¥2,580 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 Amount of Payment March 1 May 1 July 1 ¥206,400 283,800 51,600 The building was completed on July 1, 2023. To finance construction of this plant, Novak borrowed ¥516,000 from the bank on December 1, 2022. Novak had no other borrowings. The ¥516,000 was a 10-year loan bearing interest at 8%. Excess funds from the loan were invested during 2022 and earned ¥1,720. During 2023, the excess funds from the loan earned ¥860. 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. Land b. Buildings C. Interest Expense December 31, 2022 December 31, 2023 \
Novak 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 ¥119,540 in cash. In addition, it paid ¥1,720 in surveying costs and ¥3,440 for a title insurance policy. An old dwelling on the premises was demolished at a cost of ¥2,580, with ¥860 being received from the sale of materials. Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥25,800. The necessary building permits costing ¥2,580 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 Amount of Payment March 1 May 1 July 1 ¥206,400 283,800 51,600 The building was completed on July 1, 2023. To finance construction of this plant, Novak borrowed ¥516,000 from the bank on December 1, 2022. Novak had no other borrowings. The ¥516,000 was a 10-year loan bearing interest at 8%. Excess funds from the loan were invested during 2022 and earned ¥1,720. During 2023, the excess funds from the loan earned ¥860. 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. Land b. Buildings C. Interest Expense December 31, 2022 December 31, 2023 \
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Novak 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 ¥119,540 in cash. In addition, it paid ¥1,720 in surveying costs and ¥3,440 for a title insurance policy. An
old dwelling on the premises was demolished at a cost of ¥2,580, with ¥860 being received from the sale of materials.
Architectural plans were also formalized on December 1, 2022, when the architect was paid ¥25,800. The necessary building permits
costing ¥2,580 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
Amount of Payment
March 1
May 1
July 1
¥206,400
283,800
51,600
The building was completed on July 1, 2023.
To finance construction of this plant, Novak borrowed ¥516,000 from the bank on December 1, 2022. Novak had no other borrowings.
The ¥516,000 was a 10-year loan bearing interest at 8%. Excess funds from the loan were invested during 2022 and earned ¥1,720.
During 2023, the excess funds from the loan earned ¥860.
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.
Land
b.
Buildings
C.
Interest Expense
December 31, 2022
December 31, 2023
\
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