Tamarisk Landscaping began construction of a new plant on December 1, 2020. On this date, the company purchased a parcel of land for $145,200 in cash. In addition, it paid $2,160 in surveying costs and $4,320 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $960 being received from the sale of materials.
Architectural plans were also formalized on December 1, 2020, when the architect was paid $42,000. The necessary building permits costing $3,360 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2021 as follows.
Date of Payment Amount of Payment
March 1 $244,800
May 1 334,800
July 1 64,800
The building was completed on July 1, 2021.
To finance construction of this plant, Tamarisk borrowed $604,800 from the bank on December 1, 2020. Tamarisk had no other borrowings. The $604,800 was a 10-year loan bearing interest at 8%.
Compute the balance in each of the following accounts at December 31, 2020, and December 31, 2021. (Round answers to 0 decimal places, e.g. 5,275.)
December 31, 2020 December 31, 2021
(a) Balance in Land Account
(b) Balance in Building
(c) Balance in Interest Expense
