Question

In 2021, Blossom Company had the following transactions related to the purchase of a property. All transactions were for cash unless otherwise stated.

Jan. 12		Purchased real estate for a future plant site for $400,000, paying $80,000 cash and signing a note payable for the balance. On the site, there was an old building. The fair values of the land and building were $390,000 and $30,000, respectively. The old building will be demolished and a new one built.
16		Paid $7,000 for legal fees on the real estate purchase.
31		Paid $20,000 to demolish the old building to make room for the new plant.
Feb. 13		Received $8,000 for residual materials from the demolished building.
28		Graded and filled the land in preparation for the construction for $7,000.
Mar. 14		Paid $34,000 in architect fees for the building plans.
31		Paid the local municipality $14,000 for building permits.
Apr. 22		Paid excavation costs for the new building of $16,000.
Sept. 26		The construction of the building was completed. The full cost was $720,000. Paid $125,000 cash and signed a mortgage payable for the balance.
Sept. 30		Purchased a one-year insurance policy for the building, $3,000.
Oct. 20		Paved the parking lots, driveways, and sidewalks for $33,000.
Nov. 15		Installed a fence for $10,000.

(a)

Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(To record purchase of land in exchange for cash and a note payable.)
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(Paid legal fees on purchase of land.)
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(Paid to demolish building on land.)
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(Received cash from material from demolished building on land.)
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(Paid to grade and fill land.)
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(Paid architect fees for building.)
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(Paid for building permit for building.)
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(Paid excavation costs for building.)
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(Paid for construction of building.)
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(Paid for insurance in advance.)
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(Paid for paving of parking lots, driveways and sidewalks.)
Jan. 12Jan. 16Jan. 31Feb. 13Feb. 28Mar. 14Mar. 31Apr. 22Sept. 26Sept. 30Oct. 20Nov. 15
	(Paid for fence on property.)

Answer 1

Given below are the journal entries