For the year ended December 31, 2015, Westlake Ltd. had the following transactio

Question

For the year ended December 31, 2015, Westlake Ltd. had the following transactions related to the purchase of property. Assume all transactions are for cash unless otherwise stated. Purchased real estate for $534,600, paying $146,300 cash and signing a mortgage payable for the balance. The site had an old building on it and the fair values of the land and building were $473,800 and $60,800, respectively. The old building will be demolished and a new apartment building will be constructed on the site. Paid legal fees of $11,800 on the real estate purchase of February 7. Paid $30,200 to demolish the old building and make the land ready for the construction of the apartment building. Feb. 7 9 15 17 28 Mar. 2 July 2 Received $7,930 from the sale of material from the demolished building. Paid $2,000 to grade the land in preparation for the construction of the apartment building. Paid architect fees of $37,450 to design the apartment building. The full cost for construction of the apartment building was $1,314,900. Paid $339,500 cash and signed a bank loan payable for the balance. 3 Purchased a one-year insurance policy on the finished building for $5,340 Aug. 29 Paid $24,670 for the paving of sidewalks and a parking lot for the building. Your answer is correct. Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Feb. 7 Land 346 146 Feb. 9 Lan 11800 11800 Feb. 15 Land Feb. 17 2930 Feb. 28 Land Mar 2 Buildings 37450 037450 July 2 Buildings 131490 339 975400 Bank Loan Payable

Explanation / Answer

Calculate determine cost :

Land = 570670

Land improvement = 24670

Building = 1352350

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