Indigo Architecture made the following cash expenditures during its first year in operations: 1. 2. 3. 4. 5. 6. 7. 8. 9. (a1) Cost of real estate purchased as a plant site (land and building) Accrued property taxes paid at the time of the purchase of the real estate Cost of demolishing building to make land suitable for construction of a new building Architect's fees on building plans Excavation costs for new building Cost of filling and grading the land Full payment to building contractor Cost of parking lots and driveways Property taxes paid for the current year on the land Your answer is partially correct. $133,900 3,300 10,600 14,700 26,900 2,300 752,600 32,800 8,200 Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)

China Express purchased land for $140,000. Prior to construction on the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below: Land clearing costs $ 5,000 Architect fees (for new building) 30,000 Legal fees for title investigation of land 1,000 Property taxes on land (for the first year) 2,500 Building construction costs 440,000   Required:Determine the amounts that should be recorded in the land and the new building accounts.

For each of the following items, indicate if it is a Capital Expenditures (CE) or Revenue Expenditure (RE).   1.     Constructed an addition to an existing building. 2.     Repainted the president’s office. 3.     Paid cash for improvements that will increase the number of products that the machine can produce per hour. 4.     Replaced the tires on a company delivery vehicle. 5.     Replaced a component of a machine that will increase the economic life of that machine.

Based on the following data, determine the cost of the land to be reported on the balance sheet. Land purchase price $177,668 Broker's commission 17,098 Payment for demolition and removal of existing building 5,376 Cash received from sale of materials salvaged from demolished building 1,031