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$ 88,000 Begin by listing each cost for items a. through i. first, followed by i

ID: 2401920 • Letter: #

Question

$ 88,000 Begin by listing each cost for items a. through i. first, followed by items j. through q. Then dete he box empty; do not enter a zero.) Purchase price of three acres of lano Delinquent real estate taxes on the land to be paid by Drive and Fly a. Land b. Item Land Improvements Building Furniture 5,600. 9,000 b. 3,500 9,600e 1,000 c. Additional dirt and earthmoving d. Title insurance on the land acquisition e. Fence around the boundary of the property f. Building permit for the building g. Architect's fee for the design of the building h. Signs near the front of the property i. Materials used to construct the building j. Labor to construct the building k. Interest cost on construction loan for the building I. Parking lots on the property m. Lights for the parking lots n. Salary of construction supervisor (80% to building: 20% ?. 9. 20,500 h 9,000 169,000 m 9,700 o 29,100q 11,400als 70,000 ?. Requirement 2. All construction was complete and the assets were placed in service on July 1. Record partial-year depreciation Round to the nearest dolar. (Record a single compound journal entry. Round all depreciation expense amounts to the nearest w credits. Select the explanation on the last line of the journal entry table.) to parking lot and concrete walks) Date Accounts and Explanation Debit Credit o. Furniture p. Transportation of furniture from seller to the building q. Additional fencing 11,400 2,200 6,400 Dec. 31

Explanation / Answer

Answer: 1

Item no.

Description

land

Improvements

Building

Furniture

a.

Purchase price of three acres of land

88000

b.

Delinquent real estate taxes on the land to be paid by Drive and Fly

5600

c.

Additional dirt and earthmoving

9000

d.

Title insurance on the land acquisition

3500

e.

Fence around the boundary of the property

9600

f.

Building permit for the building

1000

g.

Architect's fee for the design of the building

20500

h.

Signs near the front of the property

9000

i.

Materials used to construct the building

219000

j.

Labour to construct building

169000

k.

Interest cost on construction loan for the building

9700

l.

Parking lots on the property

29100

m.

Lights for the parking lots

11400

n.

Salary of construction supervisor

14000

56000

o.

Furniture

11400

p.

Transportation of furniture from seller to the building

2200

q.

Additional fencing

6400

TOTAL

106100

79500

475200

13600

Answer-2:

As the information about the life of assets and depreciation method is not provided, depreciation can not be calaculated..

Item no.

Description

land

Improvements

Building

Furniture

a.

Purchase price of three acres of land

88000

b.

Delinquent real estate taxes on the land to be paid by Drive and Fly

5600

c.

Additional dirt and earthmoving

9000

d.

Title insurance on the land acquisition

3500

e.

Fence around the boundary of the property

9600

f.

Building permit for the building

1000

g.

Architect's fee for the design of the building

20500

h.

Signs near the front of the property

9000

i.

Materials used to construct the building

219000

j.

Labour to construct building

169000

k.

Interest cost on construction loan for the building

9700

l.

Parking lots on the property

29100

m.

Lights for the parking lots

11400

n.

Salary of construction supervisor

14000

56000

o.

Furniture

11400

p.

Transportation of furniture from seller to the building

2200

q.

Additional fencing

6400

TOTAL

106100

79500

475200

13600