Walnut Acres Corporation purchased land adjacent to its plant to improve access for trucks making...
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Accounting
Walnut Acres Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Various expenditures incurred were as follows: 1. Purchase price, $55,000 2. Brokers fees, $6,000 3. Title search and other fees, $5,000 4. Demolition of an old building on the property, $5,700 5. Grading, $1,200 6. Digging foundation for the road, $3,000 7. Laying and paving driveway, $25,000 8. Lighting $7,500 9. Signs, $1,500. Required: 1. Prepare a schedule listing the expenditures and their amounts that should be included in the Land account as part of its total cost. 2. Total the schedule to arrive at the total amount of cost for the land
Hint: Remember, you are to focus only on expenditures that are to be included in the total cost of the Land.
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