Indicate for each transaction the account(s) and amount(s) that should be debited and

credited. 
a. On January 1, 2014 purchased land with a usable office building there on for cash of
P2,000,000. Tax assessment values: Land, P200,000; Building, P600,000;
b. January 1, 2015, purchased land for future building site for a cash of P400,000; an old
building on this site, appraised at P20,000 at the date of purchase, is to be torn down
immediately. 

(a) Find the cost to be allocated to land and building as follows: -

c. Net cash cost of demolishing the old building (refer to b), P20,000. 

d. Cash cost of excavation for the basement of the new building (refer to b) was P60,000. 

e. Attorney's fees paid in connection with purchase of real estate in (refer to b), P9,000. 

f. Taxes paid on land purchased in (refer to b) assessed before completion of the building,
P3,000. 

g. Factory superintendent's salary for 2015 was P240,000. During 2015, the superintendent
spent the first six months supervising construction of the new building; the next three
months supervising the installation of productive machinery in the new building, and the
last three months supervising operations in the new building. 

 1.  Salary expense account of amounting P240,000 will be debited and salary
payable account of amounting P240,000 will be credited. 
2. Interest expense account of amounting P36,000 will be debited and Cash
account of amounting P36,000 will be credited. 
3. Construction expenses account of amounting P95,000 will be debited and
Cash/Bank account of amounting P95,000 will be credited. 
4. Insurance premium account of amounting P9,000 will be debited and
Cash/Bank account of amounting P9,000 will be credited. 
h. Paid P36,000 interest on cash borrowed during construction. The Cash was used in
payment for the new building. 

i. Cost of grading and paving parking space and walks behind new building, P95,000. 

j. Paid P9,000 insurance premium for "protection" during construction of the building.

a. Debit Land 200,000 Debit Building 600,000 and Credit Cash 800,000

b. Debit Land 400,000 Debit Building 20,000 and Credit Cash 400,000 Credit Loss on
Building (P/L) 20,000

c. Debit Building 20,000 and Credit Cash 20,000

d. Debit Building 60,000 and Credit Cash 60,000

e. Debit Land 9,000 and Credit Cash 9,000

f. Debit Land 3,000 and Credit Cash 3,000

g. Debit Salary Expense 240,000 and Credit Salary Payable 240,000

h. Debit Interest Expense 36,000 and Credit Cash 36,000

i. Debit Construction Expense 95,000 and Credit Cash 95,000

j. Debit Insurance Premium 9,000 and Credit Cash 9,000