Problem
Peete 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
1. Excavation costs for new building $ 23,000
2. Architect's fees on building plans 33,000
3. Full payment to building contractor 640,000
4. Cost of real estate purchased as a plant site (land $255,000 and building $25,000) 280,000
5. Cost of parking lots and driveways 29,000
6. Accrued real estate taxes paid at time of purchase of real estate 3,170
7. Installation cost of fences around property 6,800
8. Cost of demolishing building to make land suitable for construction of new building 31,000
9. Real estate taxes paid for the current year on land 6,400
$1,052,370
Credit
10. Proceeds from salvage of demolished building $ 12,000
Instructions
Analyze the transactions headings. Enter the number of each transaction in the Item column, and enter the amounts in the appropriate columns. For amounts in the Other Accounts column, also indicate the account title.