Mawn Company bought land and built a warehouse during 2016. Itimproperly debited the following related costs to an account titledLand and Buildings:
Land purchase
$22,000
Demolition of old building
3,000
Legal fees for land acquisition
1,500
Capitalized interest on loan for construction of building
2,900
Building construction
53,000
Assessment by city for sewer connection—city is responsible formaintenance
1,200
Landscaping (expected to be permanent in nature)
3,500
Equipment purchased for excavation
18,800
Pro rata portion of fixed overhead incurred during constructionof building
15,000
Insurance on building during construction
1,000
Profit on construction
12,000
Compensation for injury to construction worker (not covered bythe insurance policy purchased by Mawn)
3,000
Modifications to building ordered by building inspectors (dueto poor planning by Mawn)
7,500
Deliquent property taxes on land paid in 2016 (land waspurchased during the year)
2,500
Required:
Prepare the correcting entries on December 31, to properlyreclassify the preceding items.
I NEED HELP WITH PROPERLY RECLASSIFYING THESE INTO A JOURNAL ANDTHE JOURNAL HAS 28 SLOTS
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