Problem 9-1A Ripley Company was organized on January 1. During the first year of
ID: 2576799 • Letter: P
Question
Problem 9-1A Ripley Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. 1 Cost of filling and grading the land 2. Full payment to building contractor 3. Real estate taxes on land paid for the current year 4. Cost of real estate purchased as a plant site (land $107,830 and building $40,310) 5. Excavation costs for new building 6. Architect's fees on building plans 7. Accrued real estate taxes paid at time of purchase of real estate 8. Cost of parking lots and driveways 9. Cost of demolishing building to make land suitable for construction of new building 6,800 783,440 4,160 148,140 35,310 12,120 1,120 14,290 14,380 $1,019,760 Credits 10. Proceeds from salvage of demolished building $3,550Explanation / Answer
item Land Building Other accounts 1 $ 6,800 2 $ 783,440 3 $4,160 Real estate taxes 4 $ 148,140 5 $ 35,310 6 $ 12,120 7 $ 1,120 8 $14,290 Land improvements 9 $ 14,380 10 $ (3,550) Total $ 166,890 $ 830,870 $ 18,450