In: Accounting
Indicate for each transaction below the account(s) and amount(s)
that should be debited and credited. Use abbreviated account
titles.
Item | Accounts | Amounts |
(a) Jan. 1, 2001 purchased land with a usable office building thereon for cash of $200,000. Tax assessment values: Land $20,000; building $60,000 | ||
(b) Jan. 1, 2001 purchased land for future building site for a cash cost of $40,000; an old building on this site, appraised at $2,000 at the date of purchase, is to be torn down immediately. | ||
(c) Net cash cost of demolishing the old building in (b) above amounted to $2,000. | ||
(d) Cash cost of excavation for basement of the new building (b above) was $6,000. | ||
(e) Lawyers' fees paid in connection with purchase of real estate in (b) $900. | ||
(f) Taxes paid on land purchased in (b) assessed before completion of building, $300. | ||
(g) Factory superintendent's salary for 2001 was $24,000. During 2001, the superintendent spent the first six months supervising construction of the new building; the next three months supervising installation of productive machinery in the new building, and the last three months supervising operations in the new building. | ||
(h) Cost of grading and paying parking space and walks behind new building, $9,500. |
Item | Accounts | Amounts | Comments |
(a) Jan. 1, 2001 purchased land with a usable office building thereon for cash of $200,000. Tax assessment values: Land $20,000; building $60,000 | Land & building A/c (Debit) | $ 2,80,000 | |
Cash A/c (credit) | $ 2,80,000 | ||
(b) Jan. 1, 2001 purchased land for future building site for a cash cost of $40,000; an old building on this site, appraised at $2,000 at the date of purchase, is to be torn down immediately. | Land & building A/c (Debit) | $ 49,200 | All the cost incurred in relation to the purchase of this land are to be included in the value of land and Building account. |
(c) Net cash cost of demolishing the old building in (b) above amounted to $2,000. | |||
(d) Cash cost of excavation for basement of the new building (b above) was $6,000. | Cash A/c (credit) | $ 49,200 | |
(e) Lawyers' fees paid in connection with purchase of real estate in (b) $900. | |||
(f) Taxes paid on land purchased in (b) assessed before completion of building, $300. | |||
(g) Factory superintendent's salary for 2001 was $24,000. During 2001, the superintendent spent the first six months supervising construction of the new building; the next three months supervising installation of productive machinery in the new building, and the last three months supervising operations in the new building. | Salary A/c (Debit) | $ 24,000 | |
Cash A/c (credit) | $ 24,000 | ||
(h) Cost of grading and paying parking space and walks behind new building, $9,500. | Parking charges A/c (Debit) | $ 9,500 | |
Cash A/c (credit) | $ 9,500 |