a.Purchase price of three acres of land$84,000b.Delinquent real estate taxes on the land to be paid by Perfect Parking5,600c.Additional dirt and earthmoving8,500d.Title insurance on the land acquisition3,400e.Fence around the boundary of the property9,600f.Building permit for the building1,000g.Architects fee for the design of the building20,000h.Signs near the front of the property9,000i.Materials used to construct the building214,000j.Labor to construct the building165,000k.Interest cost on construction loan for the building9,900l.Parking lots on the property29,500m.Lights for the parking lots10,500n.Salary of construction supervisor (80% to building; 20% to parking lot and concrete walks)80,000o.Furniture11,600p.Transportation of furniture from seller to the building1,800q.Additional fencing6,100

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 on

June

1. Record partial-year depreciation for the year ended

December

31. Round to the nearest dollar.

Land Item LandImprovementsBuilding Furniture a. b. c. d. e. f. g. h. i. j. k. l. m. n. o. p. q. Totals

Part 4

Requirement 2. All construction was complete and the assets were placed in service on

June

1. Record partial-year depreciation for the year ended

December

31. Round to the nearest dollar. (Record a single compound journal entry. Round all depreciation expense amounts to the nearest whole dollar. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

DateAccounts and ExplanationDebitCreditDec. 31 Perfect Parking, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building: (Click the icon to view the financial data.) Perfect Parking depreciates land improvements over 25 years, buildings over 30 years, and furniture over 12 years, all on a straight-line basis with zero residual value. Read the asset