Seger Company was organized on January 1. During the first year of operations, t
ID: 1218264 • Letter: S
Question
Seger 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 real estate purchased as a plant site (land $262,870 and building $25,230) $ 288,100
2.Installation cost of fences around property 6,960
3.Cost of demolishing building to make land suitable for construction of new building 24,790
4.Excavation costs for new building 13,780
5.Accrued real estate taxes paid at time of purchase of real estate 2,449
6.Cost of parking lots and driveways 38,700
7.Architect’s fees on building plans 35,470
8.Real estate taxes paid for the current year on land 6,628
9.Full payment to building contractor 657,080
$1,073,957
Credit
10.Proceeds from salvage of demolished building $ 12,600
Analyze the transactions using the following table column headings. Enter the amounts in the appropriate columns. For amounts in the Other Accounts column, also indicate the account title. (Please select "Not Applicable" if no account title is suitable. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
10
Totals:
account titles consist of
Land Improvements, not applicable, pre-paid insurence, licenes expense, property tax expense. every account needs a title
10
Explanation / Answer
Please see the below table for all the required answers
Item 2 - Its a land improvement cost
Item 8 is a property tax which has to be every year
Remaining all items are classified either Land or Building according to their expense type.
Item Land Building Other Accounts Account Title 1 (262,870) (25,230) - 2 - - (6,960) Land Improvements 3 - (24,790) - 4 (13,780) - - 5 (2,449) - - 6 (38,700) - - 7 - (35,470) - 8 - - (6,628) Property Tax expense 9 - (657,080) - 10 - 12,600 -