Rumblebuffin Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.
Debits
1. Cost of filing and grading the land $4,000
2. Full payment to building contractor 700,000
3. Real estate taxes on land paid for the current year 5,000
4. Cost of real estate purchased as a plant site (land
building $45,000) 145,000
5. Excavation costs for new building 35,000
6. Architect's fees on building plans 10,000
7. Accrued real estate taxes paid at time of purchase
of real estate 2,000
8. Cost of parking lots and driveways 14,000
9. Cost of demolishing building to make land suitable
for construction of new building 15,000
$930,000
Credit
10. Proceeds from salvage of demolished building $ 3,500
Instructions
Analyze the foregoing transactions using the following column headings. Insert the number of each transaction in the Item space, and insert the amounts in the appropriate columns. For amounts entered in the Other Accounts column, also indicate the account titles.