Seger Company was organized on January 1. During the first year of operations, t
ID: 2721978 • 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
$ 309,490
8,250
24,120
14,040
2,469
38,660
34,380
7,092
675,260
$1,113,761
Credit
$ 11,400
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).)
Debit
1. Cost of real estate purchased as a plant site (land $280,770 and building $28,720)$ 309,490
2. Installation cost of fences around property8,250
3. Cost of demolishing building to make land suitable for construction of new building24,120
4. Excavation costs for new building14,040
5. Accrued real estate taxes paid at time of purchase of real estate2,469
6. Cost of parking lots and driveways38,660
7. Architect’s fees on building plans34,380
8. Real estate taxes paid for the current year on land7,092
9. Full payment to building contractor675,260
$1,113,761
Credit
10. Proceeds from salvage of demolished building$ 11,400
Explanation / Answer
Cost Details Land Land Improvements Building Other Account Remarks Cost of real estate purchased 309,490 Installation of fence 8,250 Cost of demolishing building 24,120 Proceeds from salvage of demolished building (11,400) Excavation cost for building (considered as buliding cost) 14,040 Accrued real extate tax paid at the time of purchase 2,469 Cost of Parking lots and driveways 38,660 Architect fee for building 34,380 Real Estate tax on land for current year 7,092 Property Tax a/c Payment to building contractor 675,260 Total 324,679 46,910 723,680 7,092