P10-1A Venable Company was organized on January 1. During the first year of oper

Question

P10-1A Venable Company was organized on January 1. During the first year of opera- tions, the following plant asset expenditures and receipts were recorded in random order: Debit 1. Cost of filling and grading the land 2. Full payment to building contractor 3. Real estate taxes on land paid for the current year 4. Cost of real estate purchased as a plant site (land $100,000 and $ 4,000 690,000 5,000 building $45,000) 5. Excavation costs for new building 6. Architect's fees on building plans 7. Accrued real estate taxes paid at time of purchase of real estate 8. Cost of parking lots and driveways 9. Cost of demolishing building to make land suitable for construction 145,000 35,000 10,000 2,000 14,000 25,000 $930,000 of new building Credit 10. Proceeds from salvage of demolished building $ 3,500 Instructions Analyze the foregoing transactions using the following column headings. Insert the number of each transaction in the Item space, and insert the amounts in the appropriate columns. For amounts entered in the Other Accounts column, also indicate the account titles Item Land Buildings Other Accounts

Explanation / Answer

Item Land Building Other accounts 1 4000 2 690000 3 5000 Property tax expense 4 145000 5 35000 6 10000 7 2000 8 14000 Land improvement 9 25000 10 -3500 Total 172500 735000 19000

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