You have been given the following information for Ethan Company as of June 1, 2010. Ethan Company purchased a parcel of land and then incurred specific costs for the construction of a new building. Below is a list of these costs:
Cost of Parking Lot and gates -------- 14,000
Cost of filling the building site -------- $10,000
Legal Fees to buy land ----------------- $2,000
Cost of driveway --------------------------- $9,000
Property Taxes for Jan 1,2010 to June 1, 2010 --------------- $5,000
Title Insurance ------------------ $2,000
Interest on the construction loan --------- $13,000
Proceeds from the sale of salvage materials ---------------- ($1500)
Purchase price of land ----------------------- $200,000
Cost of the building construction ----------- $650,000
Cost of razing building on lot ------------------- $9,500
Cost of grading the lot ----------------------------- $5,000
Required:
1. Using Excel, determine the accounts that are affected by the above transactions and the final balance of each account. (Note: The interest on the construction loan will be applied to the cost of the land.)
2. Please prepare your solution in an Excel file.