Ex 6- Enter the effect of each transaction on the accounts below: 11/15/X1 - Pai

Question

Ex 6- Enter the effect of each transaction on the accounts below: 11/15/X1 - Paid $700000 to buy land worth $420000 & building worth $280000. 12/1/X1 - Paid $140000 to tear down the old building 12/15/x1 Received $35000 back for materials salvaged from the old building. 12/31/X1 - Paid $35000 to fill and grade the lot. Another $70000 was paid to lay sod and plant trees. 1/5/X2 - Paid $70000 to build a retaining wall, pave a parking lot, and put in sprinklers. 3/15/X2 Paid $105000 to dig the trench for the foundation, & 1400000 to construct the new building. 6/1/X2 Paid $63000 in interest for the period the building was under construction. Land Land Improvements Building Other Date 11/15/20X1 12/1/20X1 12/15/20X1 12/31/20X1 1/5/20X2 3/15/20X2 6/1/20X2 Totals

Explanation / Answer

Notes 1) I treated interest as other expenses becasure it was not real productive expense indirectly related to building but it was related to building loan

2) received $35000 back for materials salvaging old building, it was treated recovery so deducted  

3) total amounts are listed in the table are fixed expenses and additional costs on fixed assets

thank you....

Date land land improvements bbulding Othes 11/15/20x1 $420000 $280000 12/1/20x1 $140000 12/15/20x1 $(35000) 12/31/20x1 $105000 1/5/20x2 $70000 3/15/20x2 $1505000 6/1/20x1 $63000 Totals $420000 $175000 $1865000 $63000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.