Alternate problem D You are the new controller for Jayson Company, which began operations on 2009 October 1, after a start-up period that ran from the middle of 2008. While reviewing the accounts, you find an account entitled "Fixed Assets", which contains the following items:

Cash paid to previous owner of land and old buildings $ 192,000 Cash given to construction company as partial payment for the new building 72,000 Legal and title search fees 2,400 Real estate commission 14,400 Cost of demolishing old building 16,800 Cost of leveling and grading 9,600 Architect's fee (90% of building and 10% improvements) 6,000 Cost of excavating (digging) basement for new building 21,600 Cash paid to construction company for new building 288,000 Repair damage done by vandals 7,200 Sprinkler system for lawn 31,200 Lighting system for parking lot 40,800 Paving of parking lot 60,000 Net invoice price of machinery 1,152,000 Freight cost incurred on machinery 50,400 Installation and testing of machinery 19,200 Medical bill paid for employee injured in installing machinery 3,600 Landscaping (permanent) 38,400 Repair damage to building in installation of machinery 4,800 Special assessment paid to city for water mains and sewer line 45,600 Account balance $2,106,000 In addition, you discover that cash receipts of USD 1,200 from selling materials salvaged from the old building were credited to Miscellaneous Revenues in 2009.
Digging deeper, you find that the plant manager spent all of his time for the first nine months of 2009 supervising installation of land improvements (10 percent), building construction (40 percent), and installation of machinery (50 percent). The plant manager's nine-month salary of USD 108,000 was debited to Officers' Salaries Expense.

a. List all items on a form containing columns for Land, Land Improvements, Building, and Machinery. Sort the items into the appropriate columns, omitting those items not properly included as an element of asset cost. Show negative amounts in parentheses. Total your columns.

b. Prepare one compound journal entry to reclassify and adjust the accounts and to eliminate the Fixed Assets account. Do not attempt to record depreciation for the partial year.