P10-1A Diaz Company was organized on January 1. During the first year of operations, the

Price: $3.99

P10-1A Diaz 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 construction of

new building 15,000

$930,000

Credits

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 Building Other Accounts