P9-30A (similar to) Question Help * Perfect Parking, near an airport, incumed th

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P9-30A (similar to) Question Help * Perfect Parking, near an airport, incumed the foliowing costs to acquire land, make land improvements, and construct and funish a small building Perfect Parking depreciates land improvements over 25 years, buildings over 40 years, and funiture over 10 years all on a straight -ine basis with zero esidual value !cickthe con to vnew the financial data) Requirement 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 comect account Determine the total cost of each asset Begn by istng each cost for ibems a through ' first. folowed by items J through Then dete ne the total cost of each asset ifa bals not used in the table, leave the box empty: do not enter a zero) Read the tequremanta Land Requirements hemLand ImprovementsBiding Furniture 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 comect account. Determine the total cost of each asset 2. All construction was complete and the assets were placed in sevice on July 1. Record patial-year depreciation for the year ended December 31. Round to the nearest dellar Print Done Enter any number in the edit telds and then cick Check Answer Pemainin Clear All

Explanation / Answer

1) Items Land Land Improvements Building Furniture A. Purchase Price $86,000.00 B. Taxes on Real Estate $6,400.00 C. Earthmoving and Dirt $8,800.00 D. Insurance for Title $3,400.00 E.Fence $9,200.00 F. Permit of Building $800.00 G. Fee of Achitect $20,400.00 H .Signs $9,600.00 I. Materials for Building $212,000.00 J. Labor for Building $167,000.00 K. Interest on construction Loan $9,700.00 L. Parking Lot $29,200.00 M.Lights for Parking Lot $10,200.00 N. Construction's Supervisor salary $10,500.00 $59,500.00 O. Cost of Furniture $11,800.00 P . Transportation of Furniture $1,800.00 Q. Fencing $6,500.00 Totals $104,600.00 $75,200.00 $469,400.00 $13,600.00 b) Accounts Titles Debit Credit Depreciation Expense—Land Improvements ($75,200/25 years) x 6/12 $1,504.00 Depreciation Expense—Building ($469,400/40 Years) x 6/12 $5,867.50 Depreciation Expense—Furniture ($13,600/10 years) x 6/12 $680.00                   Accumulated Depreciation—Land Improvements $1,504.00                   Accumulated Depreciation—Building $5,867.50                   Accumulated Depreciation—Furniture $680.00

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