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.
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 38P
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Question
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F937fd16b-c4f9-4a40-ab35-9c0e10fd2f6f%2F64d0b404-58fd-4abd-8ed1-9adca93cb562%2Fovpr0pe_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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