How do you construct balance sheet?

Accounting Help with cost of land to be reported on balance sheet?

• The following question I need to understand how to work. I am not just looking for the answer but it would help too ;) Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $42,000 and giving a short-term note for $334,000. Legal fees paid were $2,220, delinquent taxes assumed were $11,000, and fees paid to remove an old building from the land were $22,300. Materials salvaged from the demolition of the building were sold for $5,600. A contractor was paid $1,143,000 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet

• Answer:

  All costs to purchase the land and prepare it for its intended use are recorded costs. Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $42,000 Add to cost of Land. and giving a short-term note for $334,000. Add to cost of Land. Legal fees paid were $2,220, Add to Cost of Land. delinquent taxes assumed were $11,000, Add to cost of Land. and fees paid to remove an old building from the land were $22,300. Add to cost of Land. Materials salvaged from the demolition of the building were sold for $5,600. Subtract from cost of Land. A contractor was paid $1,143,000 to construct a new warehouse. Add to cost of Building.