Coffee House, Inc., opened an office in Maple Grove, Minnesota. Coffe House incurred the following costs in aquiring land, making land improvements, and constructing and furnishing the new sales building:

The company depreciates buildings over 50 years, land improvements over 25 years, and furniture over 12 years, all in a straight line basis with residual values of zero.

Identify teh proper account (land, land improvements, sales building, garage building, or furniture) for each of the costs listed in the problem. Calculate the total coat of each asset.

Requirement 2. All construction was complete and the assets were placed in service on April 2. Record depreciation for the year ended December 31. Round to the nearest dollar.

Start by recording the depreciation on the land improvments.

Next, record the sales building depreciation expense.

Now record the garage building depreciation expense.

Finish by recording the furniture depreciation expense.

Requirement 3. Why would a manager need to understand the concepts covered in this problem?

This problem shows how to determine the cost of a ____ asset. It also demonstrates the computation of ______ for a variety if those assets, which affects _______. Because virtually all businesses use these assets, a manager needs to understand how those assets costa and consumptions are determined. Managers need to understand the meaning, components, and computation of ______ because often their performance is measured by this amount.

- i Data Table a $ 360,000 8,200 C 31,900 1,000 Purchase price of land, including an old building that will be used for a garage (land market value is $315,000, building market value is $85,000) b. Grading (leveling) land Fence around the land d Attorney fee for title search on the land Delinquent real estate taxes on the land to be paid by Coffee House f Company signs at entrance to the property g. Building permit for the sales building h Architect fee for the design of the sales building i Masonry carpentry and roofing of the sales building Renovation of the garage building e 5.100 1.100 300 15.720 513,000 31 580 Print Done X i Data Table 10 300 pl Company signs trance to the property 9. Building permit for the sales building h. Architect fee for the design of the sales building Masonry, carpentry, and roofing of the sales building Renovation of the garage building k. Interest cost on construction loan for sales building Landscapi (trees and shrubs) m. Parking lot and concrete walks on the property Lights for the parking lot and Salary of construction supervisor (86% to sales building: 10% to land improvements, and 4% to garage building renovations P Office furniture for the sales building 9. Transportation and installation of furniture 15,720 513,000 31,580 9.700 6.900 52,300 7.100 n 48,000 79.900 4,100 Print Done Coffee House, Inc., opened an office in Maple Grove, Minnesota Coffee House incurred the following costs in acq Click the icon to view the financial data) The company depreciates buildings over 50 years, land improvements over 25 years, and furniture over 12 years, Read the requirements Item Land Improvements Building Building Furniture a b. . d e f g h Land Sales Garage Choose from any list or enter any number in the input fields and then continue to the next question Coffee House, Inc., opened an office in Maple Grove, Minnesota Coffee House incurred the following costs ir Click the icon to view the financial data.) The company depreciates buildings over 50 years, land improvements over 25 years, and furniture over 12 ye Read the requirements Land Sales Garage Item Land Improvements Building Building Furniture m n. 0. p. 9. Totals Choose from any list or enter any number in the input fields and then continue to the next question Coffee House, Inc., opened an office in Maple Grove, Minnesota Coffee House incurred the following costs in acquiring land, making land improvements, and constructing and tur Click the icon to view the financial data) The company depreciates buildings over 50 years, land improvements over 25 years, and future over 12 yeus, all on a straight-line basis with residual values of zero Read the requirements Requirement 2. All construction was complete and the assets were placed in service on April 2 Record depreciation for the year ended December 31. Round to the nearest dotar explanations from journal entries. Do not round intermediary calculations Only round the amount you input in the cell to the nearest dollar) Start by recording the depreciation on the land improvements Journal Entry Credit Date Accounts Debit Doc 31 Next, record the sales building depreciation expense Choose from any list or enter any number in the input fields and then continue to the next question Coffee House, Inc., opened an office in Maple Grove, Minnesota. Coffee House incurred the following costs in acc (Click the icon to view the financial data) The company depreciates buildings over 50 years, land improvements over 25 years, and furniture over 12 years, Read the requirements. Next, record the sales building depreciation expense. Journal Entry Accounts Debit Credit Date Dec 31 Now record the garage building depreciation expense. Journal Entry Date Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question Coffee House, Inc., opened an office in Maple Grove, Minnesota Coffee House incurred the following costs in B! Click the icon to view the financial data.) The company depreciates buildings over 50 years, land improvements over 25 years, and furniture over 12 yea Read the requirements. Now record the garage building depreciation expense. Journal Entry Date Accounts Debit Credit Dec 31 Finish by recording the fumiture depreciation expense. Journal Entry Date Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question Coffee House, Inc., opened an office in Maple Grove, Minnesota. Coffee House incurred the following costs in acquir (Click the icon to view the financial data.) The company depreciates buildings over 50 years, land improvements over 25 years, and furniture over 12 years, all Read the requirements. Finish by recording the furniture depreciation expense. Journal Entry Accounts Debit Credit Date Dec 31 Requirement 3. Why would a manager need to understand the concepts covered in this problem? This problem shows how to determine the cost of a asset. It also demonstrates the computation of assets, a manager needs to understand how those assets' costs and computations are determined Managers need Choose from any list or enter any number in the input fields and then continue to the next question Requirement 3. Why would a maruer need to understand the concept covered in the problem? This procitom show how to determine the cost ola It also does the computation for a variety of assets, a mager de to understand how these costs and compution we deemed Managers med to stand the meaning and measured by the amount Choose from any list or enter any number in the mput fields and then continue to the next question Coffee House, Inc., opened an office in Maple Grove, Minnesota Coffee House incurred the following costs in acquiring E (Click the icon to view the financial data) The company depreciates buildings over 50 years, land improvements over 25 years, and furniture over 12 years, all on a Read the requirements Journal Entry Accounts Date Debit Credit Dec 31 Requirement 3. Why would a manager need to understand the concepts covered in this problem? This problem shows how to determine the cost of a asset. It also demonstrates the computation of assets, a manager needs to understand how those a I computations are determined. Managers need to und measured by this amount. current plant Choose from any list or enter any number in the then continue to the next question Sllowing costs in acquiring land, making land improvements, and constructing and furnishing t niture over 12 years, all on a straight-line basis with residual values of zero. Credit blem? e computation of ermined. Managers har a variety of those assets, which affects he meaning, components, and computation of depreciation revenue - next question useful life cash net income revenue total liabilities assets, which affects emponents, and computation of Because virtually all businesses use these because often their performance is mprovements, and constructing and furnishing s with residual values of zero. cash net income revenue of those assets, which affects eaning, components, and computation of total liabilities y all businesses use these because often their performance is 2 Coffee House, Inc opened an office in Maple Grove, Minnesota Cotton House incurred the following costs in acquiring land, making and improvements, and contracting and furishing the building ck the icon to view the financial data) The company depreciates buildings over 50 years, and improvements over 25 years, and future over 12 years, all on a stragline basis with residual values of zero Read the remonts Requirement 1. Identity the proper account (land, Land improvements, Sales Building Garage Building or Furniture for each of the consisted in the problem. Calculate the total cost of each asset Start with tens a tough, next, enter tems through and lastly calculate the total for each category of autisid is not used in the table leave the field empy do not entrato Round perce when calculating promotions (XXX%), and use your computed percentage toughout. Round your finalwers to the nearest whole do Land Sales Garage Item Land Improvements Building Building Furniture C. d Choose from any lost or enter any number the input fields and then continue to the next