Seger Company was organized on January 1. During the first year of operations, t
ID: 2486370 • 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. 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).)Explanation / Answer
Other accounts Land Building Amount Account title Remarks 1 289060 29830 Identifiabe cost of land & building recorded to their respective title 2 6860 land improvement Cost of adding fence is an improvement to land 3 27350 land improvement Cost of demolishing to make land suitable for new building is an improvement to land 4 13270 Excavation cost for specific new building is capitalised to building 5 2235 Taxes paid at time of purchase is capitalised 6 38360 land improvement Cost of parking lots is an improvement to land 7 38220 Architect fee on new building has to be capitalised 8 7721 Property Tax expense current year taxes are expense 9 646700 new building cost is to be capitalised 10 -13000 Land Improvement proceeds are from demolished building therfore subtracted from land improvement Total 289060 730255