Sheridan Company was organized on January 1. During the first year of operations, the following plant asset
Question:
Sheridan Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.
Debit | ||||
1. | Excavation costs for new building | $19,000 | ||
2. | Architect’s fees on building plans | 29,000 | ||
3. | Full payment to building contractor | 636,000 | ||
4. | Cost of real estate purchased as a plant site (land $251,000 and building $25,000) | 276,000 | ||
5. | Cost of parking lots and driveways | 25,000 | ||
6. | Accrued real estate taxes paid at time of purchase of land | 2,770 | ||
7. | Installation cost of fences around property | 6,400 | ||
8. | Cost of demolishing building to make land suitable for construction of new building | 27,000 | ||
9. | Real estate taxes paid for the current year on land | 6,000 | ||
$1,027,170 | ||||
Credit | ||||
10. | Proceeds from salvage of demolished building | $ 11,600 |
Analyze the transactions using the following table column headings. Enter the amounts in the appropriate columns. For amounts in the Other Accounts column, also indicate the account title. (If an amount falls into either the Land or Buildings column, enter "Not Applicable" in the account title column. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Other Accounts | |||||||
---|---|---|---|---|---|---|---|
Item | Land | Building | Amounts | Account Title | |||
1 | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | choose an account title Property Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable Land Improvements | |||
2 | enter a dollar amount | enter a dollar amount | enter a dollar amount | choose an account title License ExpenseProperty Tax ExpenseNot ApplicablePrepaid InsuranceLand Improvements | |||
3 | enter a dollar amount | enter a dollar amount | enter a dollar amount | choose an account title Land ImprovementsLicense ExpensePrepaid InsuranceNot ApplicableProperty Tax Expense | |||
4 | enter a dollar amount | enter a dollar amount | enter a dollar amount | choose an account title Prepaid InsuranceLicense ExpenseNot ApplicableProperty Tax ExpenseLand Improvements | |||
5 | enter a dollar amount | enter a dollar amount | enter a dollar amount | choose an account title Land ImprovementsProperty Tax ExpensePrepaid InsuranceLicense ExpenseNot Applicable | |||
6 | enter a dollar amount | enter a dollar amount | enter a dollar amount | choose an account title Not ApplicableProperty Tax ExpensePrepaid InsuranceLicense ExpenseLand Improvements | |||
7 | enter a dollar amount | enter a dollar amount | enter a dollar amount | choose an account title Land ImprovementsNot ApplicableProperty Tax ExpenseLicense ExpensePrepaid Insurance | |||
8 | enter a dollar amount | enter a dollar amount | enter a dollar amount | choose an account title Prepaid InsuranceLand ImprovementsLicense ExpenseProperty Tax ExpenseNot Applicable | |||
9 | enter a dollar amount | enter a dollar amount | enter a dollar amount | choose an account title License ExpenseLand ImprovementsProperty Tax ExpensePrepaid InsuranceNot Applicable | |||
10 | enter a dollar amount | enter a dollar amount | enter a dollar amount | choose an account title Land ImprovementsLicense ExpensePrepaid InsuranceNot ApplicableProperty Tax Expense | |||
$enter a total for the land column | $enter a total for the building column |
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso