Riverbed Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Item 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Cost of filling and grading the land Full payment to building contractor Real estate taxes paid for the current year on land Cost of real estate purchased as a plant site (land $118,000 and building $50,000) Excavation costs for new building Architect's fees on building plans Accrued real estate taxes paid at time of purchase of land Cost of parking lots and driveways Cost of demolishing building to make land suitable for construction of new building Analyze the transactions using the following table column headings. Enter the amounts in the appropriate columns. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Proceeds from salvage of demolished building $ $ Land 3,500 i 5,500 118,000 i i 2,500 i 24,000 ($3,000) Debit 150,500 $ Credit $ Buildings i 691,000 50,000 37,000 10,500 i i 788,500 $ 3,500 $ 691,000 5,500 168,000 37,000 10,500 2,500 15,000 24,000 $957,000 $ 3,000 Other Accounts i i i i i 15,000 i i
Riverbed Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Item 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Cost of filling and grading the land Full payment to building contractor Real estate taxes paid for the current year on land Cost of real estate purchased as a plant site (land $118,000 and building $50,000) Excavation costs for new building Architect's fees on building plans Accrued real estate taxes paid at time of purchase of land Cost of parking lots and driveways Cost of demolishing building to make land suitable for construction of new building Analyze the transactions using the following table column headings. Enter the amounts in the appropriate columns. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Proceeds from salvage of demolished building $ $ Land 3,500 i 5,500 118,000 i i 2,500 i 24,000 ($3,000) Debit 150,500 $ Credit $ Buildings i 691,000 50,000 37,000 10,500 i i 788,500 $ 3,500 $ 691,000 5,500 168,000 37,000 10,500 2,500 15,000 24,000 $957,000 $ 3,000 Other Accounts i i i i i 15,000 i i
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section19.4: Disposing Of Plant Assets
Problem 1WT
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Transcribed Image Text:Riverbed Company was organized on January 1. During the first year of operations, the following plant asset expenditures and
receipts were recorded in random order.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Item
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Cost of filling and grading the land
Full payment to building contractor
Real estate taxes paid for the current year on land
Cost of real estate purchased as a plant site (land $118,000 and building $50,000)
Excavation costs for new building
Architect's fees on building plans
Accrued real estate taxes paid at time of purchase of land
Cost of parking lots and driveways
Cost of demolishing building to make land suitable for construction of new building
Analyze the transactions using the following table column headings. Enter the amounts in the appropriate columns. (If an amount
reduces the account balance then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)
Proceeds from salvage of demolished building
$
$
Land
3,500
i
5,500
118,000
i
i
2,500
i
24,000
($3,000)
Debit
150,500
$
Credit
$
Buildings
i
691,000
50,000
37,000
10,500
i
i
i
i
788,500
$3,500
691,000
$
5,500
168,000
37,000
10,500
2,500
15,000
24,000
$957,000
$3,000
Other Accounts
i
i
i
i
i
15,000
i
i
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