Indicate for Each Transaction Below the Account(s) and Amount(s) That

question 154

Essay

Indicate for each transaction below the account(s) and amount(s) that should be debited and credited. Use abbreviated account titles. $\begin{array}{|l|l|l|}\hline \text { tem } & \text { Accounts } & \text { Amounts } \\\hline \text { (a) Jan. 1, } 2001 \text { purchased land with a usable office building thereon for cash of } \$ 200,000 \text {. Tax } & & \\\text { assessment values: Land } \$ 20,000 \text {; building } \$ 60,000 & & \\\hline\text { (b) Jan. 1. 2001 purchased land for future building site for a cash cost of \( \$ 40.000 \); an old building on}\\\text {this site, appraised at \( \$ 2,000 \) at the date of purchase, is to be torn down immediately. }\\\hline\text { (c) Net cash cost of demolishing the old building in (b) above amounted to \( \$ 2,000 \).}\\\hline\text {(d) Cash cost of excavation for basement of the new building (b above) was \( \$ 6.000 \). }\\\hline\text {(e) Lawyers' fees paid in connection with purchase of real estate in (b) \( \$ 900 \). }\\\hline\text {(f) Taxes paid on land purchased in (b) assessed before completion of building. \( \$ 300 \). }\\\hline\text {(g) Factory superintendent's salary for 2001 was \( \$ 24,000 \). During 2001, the superintendent spent the }\\\text { first six months supervising construction of the new building; the next three months supervising }\\\text { installation of productive machinery in the new building. and the last three months supervising }\\\text {operations in the new building. }\\\hline\text { (h) Cost of grading and paying parking space and walks behind new building. } \$ 9.500 \text {. }\\\hline\end{array}$

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Definitions:

Competitive Retail

The marketplace scenario where various retailers compete with each other to offer goods or services to consumers, often leading to better prices and quality.

Elastic Demand

Describes a market situation where the demand for a product or service significantly changes in response to a change in price.

Business Travelers

Individuals who travel primarily for business purposes, such as meetings, conferences, and networking.

Lower Price

When the cost of a good or service decreases relative to previous pricing levels, making it more affordable.