Mia Fitness Club was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.

Debits

1. Accrued real estate taxes paid at time of purchase of real estate ......$ 2,000

2. Real estate taxes on land paid for the current year .......... 3,000

3. Full payment to building contractor ................ 600,000

4. Excavation costs for new building ................. 25,000

5. Cost of real estate purchased as a plant site

(land $100,000 and building $25,000) ............. 125,000

6. Cost of parking lots and driveways ................ 15,000

7. Architect’s fees on building plans ................. 10,000

8. Installation cost of fences around property ............. 4,000

9. Cost of demolishing building to make land suitable

for construction of new building ................21,000

$805,000

Credit

10. Proceeds from salvage of demolished building .......... $ 2,500

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 in the Other Accounts column, also indicate the accounttitle.

Transcribed Image Text:

Item L Land Bilding Other Accounts