Business, 15.04.2020 22:51 brianwins07
On July 1, 2016, Jekel & Hyde Inc. purchased land and incurred other costs relative to the construction of a new warehouse. A summary of economic activities is listed below:
Purchase price $185,000
Title insurance $1,500
Legal fees to purchase land $1,000
Cost of razing old building on lot 8,500
Proceeds from sale of salvageable materials (1,200)
Property taxes, January 1, 2016–June 30, 2016 3,000
Cost of grading and filling building site 9,000
Cost of building construction 620,000
Interest on construction loan 12,000
Cost of constructing driveway 8,000
Cost of parking lot and fencing 12,000
Required:
Create an Excel worksheet to summarize and indicate the accounts (building, land etc.) that would be affected by the above transactions and the resulting balance in each account. Apply the interest on the construction loan to the cost of the building only.
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On July 1, 2016, Jekel & Hyde Inc. purchased land and incurred other costs relative to the const...
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