Assignment: Property, Plant, and Equipment Delish, Inc, is opening a new restaurant on the outskirts of town. The company policy is to depreciate land improvements over 20 years, buildings over 40 years, and all furniture and equipment over 8 years, all on a straight-line basis using a mid-month corvention with no residual value. Instructions 1. Determine the total cost of each asset. 2. All construction was completed on October 31. Prepare the year-end journal entry to record depreciation expense assuming no depreciation has been recorded yet. Signs near the front of the property 9,200 $9,200 Materials used to construct the building 241,000 $241,000 Labor to construct the building 172.000 $172,000 Interest cost on construction loan for the building 13,200 $13,200 Parking lots on the property $28,800 Lights for the parking lots 28.800 $10,600 Salary of construction supervisor (80% to building: 20% to parking lot and concrete. 40,000 $40,000 walks) 10,600 $40,000 Furniture and equipment 110,000 $110,000 Transportation of furniture and equipment from seller to the building 5.200 $5,200 Additional fencing 6,000 $6,000 TOTAL PROJECT COSTS $770,400$0 $0 $0 $0 $770,400 Part 2 JOURNAL Page 101 Additional fencing 6,000 $6,000 TOTAL PROJECT COSTS $770,400$0 $0 $0 $0 $770,400 Part 2 JOURNAL Page 101 DATE DESCRIPTION POST. DEBIT CREDIT 20. REF. Dec 31 Depreciation Expense - Land Improvements Depreciation Expense - Equipment Depreciation Expense - Building Accumulated Depreciation To record partial year depreciation on new assets