Kendrick Company Was Organized on January 1 Instructions
Analyze the Foregoing Transactions Using the Following Tabular Arrangement

Kendrick Company was organized on January 1. During the first year of operations, the following expenditures and receipts were recorded in random order. $\begin{array}{lc}\text { 1. Cost of real estate purchased as a plant site (land and building) } & \$ 130,000 \\\text { 2. Accrued real estate taxes paid at the time of the purchase of the real estate } & 4,000 \\\text { 3. Cost of demolishing building to make land suitable for construction of a new building } & 10,000 \\\text { 4. Architect's fees on building plans } & 14,000 \\\text { 5. Excavation costs for new building } & 30,000 \\\text { 6. Cost of filling and grading the land } & 5,000 \\\text { 7. Insurance and taxes during construction of building } & 6,000 \\\text { 8. Cost of repairs caused by a small fire shortly after completion of building } & 7,000 \\\text { 9. Interest paid during the year, of which \$ 45,000 pertains to the construction period } & 74,000 \\\text { 10. Full payment to building contractor } & 955,000 \\\text { 11. Cost of parking lots and driveways } & 36,000 \\\text { 12. Real estate taxes paid for the current year on the land } &\underline{\text{ \quad\quad4,000 }} \\\text { Total Debits } &\underline{\text{ \underline{\text{\quad\quad \$1.275.000 }} }} \\ \end{array}$ $\begin{array}{llr}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text { \underline{\text{Credits }} } \\\\\text { 13. Insurance proceeds for fire damage } && \$ 3,000 \\\text { 14. Proceeds from salvage of demolished building } & & \underline{\text{3,500 }} \\\text { Total Credits } & & \$ 6,500\end{array}$ Instructions
Analyze the foregoing transactions using the following tabular arrangement. Insert the number of each transaction in the Item space and insert the amounts in the appropriate columns. $\begin{array}{lc}\text {\underline{\text{ Item }} }& \text { \underline{\text{ Land }} } &\text { \underline{\text{ Buildings }} }& \text { \underline{\text{ Other }} } & \text { \underline{\text{ Account Title }} } \end{array}$