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Rumblebuffin Company was organized on January 1 During the first year of operation the following plant asset expenditures and receipts were recorded in random order Debits Cost of filling and

Rumblebuffin Company 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. Cost of filling and grading the land

$ 4,000

2. Full payment to building contractor

700,000

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 fees on building plans

10,000

7. Accrued real estate taxes paid at time of purchase of real estate

2,000

8. Cost of parking lots and driveways

14,000

9. Cost of demolishing building to make land suitable for

15,000

construction of new building

$930,000

 

 

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 space, and insert the amounts in the appropriate columns. For amounts entered in the Other Accounts column, also indicate the account titles.

Item

Land

Buildings

Other Accounts

May 21 2020 View more View Less

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