Venable 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. Cost of filling and grading the land $4,000

2. Full Payment to building contractor $690,000

3. Real estate taxes on land paid for the current year $5,000

4. Cost of real estate purchased as a plant site (land $100,000 and building $45,000) $145,000

5. Excavation costs for new building $35,000

6. Architect's fee on building plans $10,000

7. Accrued real estate taxes paid at time of our chase of real estate $2,000

8. cost of parking lots and driveways $14,000

9. cost of demolishing building to make land suitable for construction of new building $25,000

Credit:

10. proceeds from salvage of demolished building $3,500

Instructions:

Analyze the foregoing transactions using the following column headings. Insert the number of each transaction in the Item column, and then insert the amounts in the other appropriate columns. For amounts entered in the Other Accounts column, also indicate the account titles.

Item, Land, Buildings, Other Accounts

Totals Given: Land $172,500 Buildings $735,000

Answer rating: 100% (QA)

Item Land Buildings Other Account ... View the full answer