Reference no: EM132939170

The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk next to the item letter.

a. Fee paid to attorney for title search $ 2,500
b. Cost of real estate acquired as a plant site: Land 285,000
Cost of real estate acquired as a plant site: Building (to be demolished) 55,000
c. Delinquent real estate taxes on property, assumed by purchaser 15,500
d. Cost of razing and removing building acquired in B 5,000
e.* Proceeds from sale of salvage materials from old building 4,000
f. Special assessment paid to city for extension of water main to the property 29,000
g. Architect's and engineer's fees for plans and supervision 60,000
h. Premium on one-year insurance policy during construction 6,000
i. Cost of filling and grading land 12,000
j.* Money borrowed to pay building contractor 900,000
k. Cost of repairing windstorm damage during construction 5,500
l. Cost of paving parking lot to be used by customers 32,000
m. Cost of trees and shrubbery planted 11,000
n. Cost of floodlights installed on parking lot 2,000
o. Cost of repairing vandalism damage during construction 2,500
p.* Proceeds from insurance company for windstorm and vandalism damage 7,500
q. Payment to building contractor for new building 800,000
r. Interest incurred on building loan during construction 34,500
s.* Refund of premium on insurance policy (h) canceled after 11 months 500

Problem 1: How would assign each payment and receipt to the correct locations of Land , Land Improvements, Building, or Other Accounts in a table and determine the amount debited to Land, Land Improvements, and Building?