Question: Good eve tutor! Can you help me with my assignment about Intermediate Accounting 1? The topic is Property, Plant, and Equipment. THANK YOU IN ADVANCE,

Good eve tutor!

Can you help me with my assignment about Intermediate Accounting 1?

The topic is Property, Plant, and Equipment.

THANK YOU IN ADVANCE, TUTOR!

PART II.The following are the expenditures and receipts related to land, land improvements, and building acquired for use in a business enterprise. The receipts are enclosed in parentheses.

  1. Money borrowed to pay building contractor (signed a note) - (P275,000)
  2. Payment for construction from note proceeds - P275,000
  3. Cost of land fill and clearing - P8,000
  4. Delinquent real estate taxes on property assumed by purchaser - P7,000
  5. Premium on 6-month insurance policy during construction - P6,000
  6. Refund of one-month insurance premium due to early completion of construction - (P1,000) (g) Architect's fee on building - P22,000
  7. Cost of real estate purchased as a plant site (land P200,000 and building P50,000) - P250,000
  8. Commission fee paid to real estate agency - P9,000
  9. Installation of fences around property - P4,000
  10. Cost of razing and removing building - P11,000
  11. Proceeds from salvage of demolished building - (P5,000)
  12. Interest paid during construction on money borrowed for construction - P13,000
  13. Cost of parking lots and driveways - P19,000
  14. Cost of trees and shrubbery planted (permanent in nature) - P14,000
  15. Excavation costs for new building - P3,000

Required:Identify the characteristics of each item by writing its cost to their corresponding account title. All receipts must be reported in parentheses. For amounts entered in Other Accounts column, indicate its account title. (16 items x 2 points)

Item Land Land Improvements Buildings Other Accounts

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