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In: Accounting

The following expenditures and receipt(s) are either related to land, land improvements, or buildings acquired for...

The following expenditures and receipt(s) are either related to land, land improvements, or buildings acquired for use in a business enterprise. Receipts are enclosed in parentheses.

Identify each item below by writing either land, land improvements or buildings below the item:

Interest paid during construction on money borrowed for construction                   13,000                                                                      

Cost of parking lots and driveways                                                                           19,000                                    

Cost of trees and shrubbery planted (permanent in nature)                                    14,000                                    

Refund of 1-month insurance premium because construction completed

     Early                                                                                                                 (1,000)

Architect’s fee on building                                                                                      22,000

Cost of real estate purchased as a plant site (land $200,000 & building $50,000)           250,000

Commission fee paid to real estate agency                                                                       9,000

Installation of fences around property                                                                                4,000

Excavation costs for new building                                                                                       3,000                                                                                         

Proceeds from salvage of demolished building                                                                 (5,000)

Solutions

Expert Solution

Land Land Improvement Building
Interest paid during construction on money borrowed for construction       13,000
Cost of parking lots and driveways               19,000
Cost of trees and shrubbery planted (permanent in nature)          14,000
Refund of 1-month insurance premium because construction completed Early       (1,000)
Architect’s fee on building         22,000
Cost of real estate purchased as a plant site         250,000
Commission fee paid to real estate agency            9,000
Installation of fences around property                 4,000
Excavation costs for new building                 3,000
Proceeds from salvage of demolished building           (5,000)

ekkarill92 answered 2 years ago
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