Answer to Question #214195 in Accounting for Thea

Question

On January 1, 2015, Wilmer Co. began constructing a building on a land that it had previously acquired. The building is to be used by the company as its main office. The building was completed on September 1,2016. The following payments were made to the sub-contractor:

Answer 1

31/12/2015 Dr Work in Progress

Cr Payments of raw materials

1/9/2016 Dr Building

Cr Payments of raw materials used during construction.