On July 1, 2022, Zakel & Hyde Company purchased land and incurred other costs relative to the construction of a new warehouse. A summary of economic activities is listed below: Purchase price Title insurance Legal fees to purchase land Cost of razing old building on lot $185,000 1,500 1,000 8,500 Proceeds from the sale of salvageable materials (1,200) Property taxes, January 1, 2022 - June 30, 3,000 2022 Cost of grading and filling building site 9,000 Cost of building construction 620,000 Interest on construction loan Cost of construction driveway 12,000 8,000 12,000 Cost of parking lot and fencing Required: Indicate the accounts that would be affected by the above transactions and the resulting balance in each account.

On July 1, 2022, Zakel & Hyde Company purchased land and incurred other costs relative to the construction of a new warehouse. A summary of economic activities is listed below: Purchase price Title insurance Legal fees to purchase land Cost of razing old building on lot $185,000 1,500 1,000 8,500 Proceeds from the sale of salvageable materials (1,200) Property taxes, January 1, 2022 - June 30, 3,000 2022 Cost of grading and filling building site 9,000 Cost of building construction 620,000 Interest on construction loan Cost of construction driveway 12,000 8,000 12,000 Cost of parking lot and fencing Required: Indicate the accounts that would be affected by the above transactions and the resulting balance in each account.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 38P

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