Vandergiff Jewelry incurred the following costs to acquire land, make land improvements, and construct and furnish a new building.

Vandergriff depreciates land improvements over 20 years, buildings over 40 years, and furniture over 8 years, all on a straight-line basis with zero residual value.

Requirements 

1. Set up columns for Land, Land Improvements, Building, and Furniture. 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 on May 1. Record partial-year depreciation for the year ended December 31. 

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a. Purchase price of 4 acres of land. $ 85,000 b. Real estate commission 3,400 c. Landscaping (additional dirt and earthmoving!)............... 8,100 d. Fence around the boundary of the property 9,900 e. Delinquent real estate taxes on the land to be paid by Vandergriff......... 5,900 f. Company signs at front of the property. 9,700 g. Building permit for the building... 500 h. Architect's fee for the design of the building. 22,500 i. Labor to construct the building........... 169,000 j. Materials used to construct the building........... 215,000 k. Interest cost on construction loan for the building............. 9,000 1. Landscaping (shrubs) 6,400 m. Parking lot and concrete walks......... 29,700 n. Lights for the parking lot and walkways......... 10,300 o. Salary of construction supervisor (85% to building; 15% to parking lot and concrete walks)...... 40,000 p. Furniture for the building.... 117,800 q. Transportation and installation of furniture...... 2,200