Question

i Requirements 1. Columns for Land, Land Improvements, Building, and Furniture have been set up. Show how to account for each cost by listing the cost under the correct account. Determine the total cost of each asset. 2. All construction was complete and the assets were placed in service orn August 1. Record partial-year depreciation for the year ended December 31 Round to the nearest dollar. Print Done

Answer 1

Ans.01 Land ImprovementsBuildin Amount Land Furniture 000.0087,000.00 $5,600.00 $8,300.00 $3,500.00 Purchase e of three acres of land Delinguent real estate taxes on the land to be paid by Best parkin Additional dirt and earthmovin Title insurance on the land acquisition Fence around the boundary of the propert Building permit for the buildin Architect's fees for the design of the buildin Signs near the front of the Material used to construct the buildin Labor to construct the buildirn interest cost on construction loan for the buildin $5,600.00 $8,300.00 $3,500.00 $9,500.00 $700.00 $20,900.00 $9,400.00 S215,000.00 173,000.00 $9,600.00 $29,900.00 $11,700.00 $80,000.00 $11,600.00 $2,200.00 $6,300.00 $9,500.00 $700.00 900.00 $9,400.00 215,000.00 $173,000.00 $9,600.00 arking lot on the pro lights for the parking lots Salary of construction supervisor (85% to building, 15% to parking lot and concreate walks Furniture $29,900.00 $11,700.00 $12,000.00 ropert $68,000.00 $11,600.00 rans ation of furniture from seller to the buildin Additional fencin $6,300.00 $104,400.00$78,800.00 $487,200.00$13,800.00 Total

ns 2 DATE DESCRIPTION POST. REF DEBIT $ CREDIT $ Dec-31 Depreciation Expenses-Land Improvement 1,313 Accumulated depreciation Land Improvement 1,313 DATE DESCRIPTION POST. REF DEBIT $ CREDIT $ Dec-31 Depreciation Expenses- Building 4,060 Accumulated depreciation Buildin 4,060 DATE DESCRIPTION POST. REF DEBIT $ CREDIT $ Dec-31 Depreciation Expenses-Furniture 479 Accumulated depreciation Furniture 479 Working note 1 Land Improvements Building Furniture Straight line method Cost of Assets- Salvage/ residual value Life in no of years $78,800 -0 25 years $487, 200-0$13,800- 0 Depreciation 50 years 12 years $78,800.00 25 $487,200.00 $13,800.00 Depreciation- 50 12 Depreciation per year- $3,152.00 $9,744.00 $1,150.00 Depreciation per Month Depreciation per year/12 Months $262.67 $812.00 $95.83 Current period (Aug 01 Dec 31) Five months 5 Months Depreciation Expenses Depreciation per month Five month 313 060