Reference no: EM131812643

Pina Landscaping began construction a new plant on December 1, 2017. On this date, the company purchased a parcel of land for $142, 800 in cash. In addition, it paid $2, 160 in surveying costs and $3, 840 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3, 120, with $960 being received from the sale of materials. Architectural plans were also formalized on December 1, 2017, when the architect was paid $34, 800. The necessary building permits costing $3, 120 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor 2018 as follows. The building was completed on July 1, 2018. To finance construction of this plant, Pina borrowed $607, 200 from the bank on December 1, 2017. Pina had no other borrowings. The $607, 200 was a 10-year loan bearing interest at 10%. Compute the balance in each of the following accounts at December 31, 2017, and December 31, 2018.