Problem:
The following expenditures were incurred by Raven Run Industries. These expenditures relate to land, buildings and machinery and equipment.
Title Search $ 600
Architect's fees 3,000
Cash paid for land and old building 90,000
Removal of old building 16,000
Excavation before construction 18,000
Interest on short-term loans during construction 7,000
Machinery purchased 57,000
Freight on machinery purchased 1,200
Storage charges on machinery until construction was finished 1,900
New building construction 475,000
Assessment by city for drainage 1,500
Charges for transporting machinery from storage 700
Installation of machinery 2,100
Landscaping of facility 5,500
Provide a schedule showing the amount debited to Land, to Buildings, to Machinery and Equipment and to other expense accounts. The benefits of capitalizing interest during construction exceed the cost of implementation.