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PART1 The following expenditures and receipts are related to land, land improvem acquired for use in a business enterprise. Determine how the following ents, and buildings should be classified: (a) Money borrowed to pay building contractor (b) Payment for construction from note proceeds (c) Cost of land fill and clearing (d) Delinquent real estate taxes on property assumed (e) Premium on insurance policy during construction construction completed ear PARTI RECORD THE FOLLOWING TRANSACTIONS IN THE GENERAL JOURNAL: 1-On May 15, 2007, Matrix, Inc sold building materials for $10,500 that are subject to a 9% sales tax. 2-On May 16, 2007 , Matris, Inc recelved $9,000in advance for service to take place on July 12, 2007. 3-On May 30, 2007, Matrix, Inc. asked Carter, Co. to accept a 60-day, 15% note to replace its existing $10,000 account payable to Carter 4-On May 30, 2007, Matrix, Inc issued a $150,000, 4-year, 12% note at face value to Forest Hills Bank and received $150,000 cash. The note requires annual interest payments each December 31. 5-On july 30, 2007, Matrix, Inc. pays the note plus interest to Carter. 6-On August 1, 2007, Matrix, Inc. asked Carter, Co. to accept a 90-day, 15% note to replace its existing $29,000 account payable to Carter. 7-On October 30, 2007, Matrix, Inc. pays the note plus interest to Carter 8-On October 31, 2007, Matrix Inc borrows $75,000 from American Bank. The note bears interest at 9% per year. Principal and interest are due in 90 days (December 31, 2007). 9-On October 31, 2007, Matrix weekly payroll of $30,000 entirely subject to F.I.C.A. withholding of $1,420 and union dues of $99 deducted. Journal entry to record salaries and wages paid. 11- On October 31, 2007, Matrix weekly payroll of $30,000 entirely subject to F.I.C.A. and Medicare (7.65%), federal (0.8%) and state (4%) unemployment taxes, with income tax withholding of $1,320 and union dues of $88 deducted. Journal entry to record employer payroll taxes. 12- Prepare Matrix journal entries to record the December 31 accrued notes interest. RECORD THE FOLLOWING TRANSACTIONS IN THE GENERAL JOURNAL

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