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

Price: $3.99

P10-1B Selmon 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. Accrued real estate taxes paid at time of purchase of real estate $ 2,000

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

3. Full payment to building contractor 600,000

4. Excavation costs for new building 22,000

5. Cost of real estate purchased as a plant site (land $100,000 and building

$25,000) 125,000

6. Cost of parking lots and driveways 15,000

7. Architect’s fees on building plans 10,000

8. Installation cost of fences around property 4,000

9. Cost of demolishing building to make land suitable for construction of new

building 24,000 $805,000

Credit

10. Proceeds from salvage of demolished building $ 2,500

Instructions

Analyze the foregoing tranactions 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 title.

Item Land Building Other Accounts