Gegax Manufacturing incurred the following costs in acquiring land, making land improvements, and constructing and furnishing a new building. (Click the icon to view the financial data.) Gegax Manufacturing depreciates buildings over 40 years, land improvements over 20 years, and furniture over 10 years, all on a straight-line basis with zero residual value. Read the requirements. Value. a. $ 190,000 7,800 C. 16,600 e. Purchase price of four acres of land b. Additional dirt and earthmoving Fence around the boundary of the property d. Attorney fee for. title search on the land. Unpaid property taxes on the land to be paid by Gegax. f. Company signs at the front of the property .. g. Building permit for the building h. Architect's fee for the design of the building i. Labor to construct the building...... j. Materials used to construct the building. k. Landscaping 1. Parking lot and concrete walks. m. Lights for the parking lot and walkways. n. Salary of construction supervisor (75% to building; 25% to parking lot and concrete walks) o Furniture for the building .. p. Transportation and installation of furniture... 1,900 5,900 4,300 1,300 15,000 480,000 420,000 6,400 28,700 11,800 70,000 107,800 2,000 Ir d Requirements w 1. Show how to account for each cost by listing the cost under the Land, Land Improvements, Building, or Furniture account. Determine the total cost of each asset. 2. All construction was complete and the assets were placed in service on October 1. Record partial-year depreciation for the year ended December 31. Round intermediate calculations to the nearest cent and final answers to the nearest whole dollar. Print Done Requirement 1. Show how to account for each cost by listing the cost under the Land, Land Improvements, Building, or Furniture account. Determine the total cost of each asset. Begin by allocating the cost of events a. through i. to the plant asset accounts. Next, allocate the cost of events j. through p.. Lastly, calculate the total cost of each asset. (Leave unused cells blank.) Land Item Land Improvements Buildings Furniture a. b. C. d. e. f. g. h. i. j. k. I. m. n. o p. Totals Requirement 2. All construction was complete and the assets were placed in service on October 1. Record partial-year depreciation for the year ended December 31. Round intermediate calculations to the nearest cent and final answers to the nearest whole dollar. (Record debits first, then credits. Exclude explanations from all journal entries.) Start by recording the partial-year depreciation on the land improvements. Journal Entry Date Accounts Debit Credit Dec 31 Next, record the partial-year depreciation on the building. Journal Entry Date Accounts Debit Credit Dec 31 Now record the partial-year depreciation on the furniture. Journal Entry Date Accounts Debit Credit Dec 31
