PROBLEM1:

Perfect Parking near an airport incurred the following costs to acquire land, make land improvements, and construct and furnish a small building:

1. Purchase price of three acres of land $80000
2. Delinquent real estate taxes on the land to be paid by Perfect Parking $5800
3. Additional dirt and earthmoving $8900
4. Title insurance on the land acquisition $3200
5. Fence around the boundary of the property $9900
6. Building permit for the building $400
7. Architect fee for the design of the building $20300
8. Signs near the front of the property $9500
9. Materials used to construct the building $213000
10. Labor to construct the building $168000
11. Interest cost on construction loan for the building $9600
12. Parking lots on the property $29300
13. Lights for the parking lots $11900
14. Salary of construction supervisor (80 % to building; 20% to parking lot and concrete walks) $40000
15. Furniture $11400
16. Transportation of furniture from seller to the building $2500
17. Additional fencing $6900

Perfect parking depreciate land improvements over 25 years, building over 50 years, and furniture over 10 years, all on straight line basis with zero residual value.

Requirements:

1. 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 August 1. Record partial year depreciation for the year ended December31. Requirement1:Show how to account for each cost by listing the cost under the correct account. Determine the total cost of each asset.Begins by listing each cost for items a. through i. first, followed by items j. through q. then determine the total cost of each asset. (leave any unused cells blank.)

item	Land	Land Improvements	Building	Furniture
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
totals

Requirement2:

All construction was complete and the assets were placed in service on August 1. Record partial year depreciation for the year ended December31.

PROBLEM2:

At September 30.2014, the account of Park Terrace Medical Center (PTMC) include the following:

Account Receivable $144000

Allowance for Bad Debts (credit balance) 3100

During the last quarter of 2014, PTMC completed the following selected transactions:

Dec.28 Wrote off accounts receivable as uncollectible: Sapphire Co., $1200; Owen Reis, $1100; and Pristine, Inc., $600.

Dec31 Recorded bad debts expense based on the aging of accounts receivable, as follows:

Age of accounts

Accounts Receivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days

$164000 $104000 $38000 $17000 $5000

Estimated percent uncollectible 0.3% 3% 30% 35%

Requirement1: Journalize the transactions.

Dec 28: wrote off accounts receivable as uncollectible: Sapphire Co., $1200; Owen Reis, $1100; and Pristine, Inc., $600.

Dec 31 Recorded bad debts expense based on the aging of accounts receivable

Requirement 2:

Open the allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance. (Enter the September 30 balance an d post the December 28 entry on the first line of the account. Calculate the adjusted balance on the second line of the account. Then post the December 31 adjusting entry on the third line of the account and calculate the December 31 adjusted balance on the last line of the account)

Requirement 3:

Show how Park terrace Medical Center should report net accounts receivable on its December 31, 2014, balance sheet.

PROBLEM1: Perfect Parking near an airport incurred the following costs to acquire land, make land improvements, and construct and furnish a small building: a. b. c. d. e. f. g. h. i. j. k. l. m. n. Purchase price of three acres of land Delinquent real estate taxes on the land to be paid by Perfect Parking Additional dirt and earthmoving Title insurance on the land acquisition Fence around the boundary of the property Building permit for the building Architect fee for the design of the building Signs near the front of the property Materials used to construct the building Labor to construct the building Interest cost on construction loan for the building Parking lots on the property Lights for the parking lots Salary of construction supervisor (80 % to building; 20% to parking lot and concrete walks) o. Furniture p. Transportation of furniture from seller to the building q. Additional fencing $80000 $5800 $8900 $3200 $9900 $400 $20300 $9500 $213000 $168000 $9600 $29300 $11900 $40000 $11400 $2500 $6900 Perfect parking depreciate land improvements over 25 years, building over 50 years, and furniture over 10 years, all on straight line basis with zero residual value. Requirements: 1. 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 August 1. Record partial year depreciation for the year ended December31. Requirement1: Show how to account for each cost by listing the cost under the correct account. Determine the total cost of each asset. Begins by listing each cost for items a. through i. first, followed by items j. through q. then determine the total cost of each asset. (leave any unused cells blank.) item A Land Land Improvements Building Furniture B C D E F G H I J K L M N O P Q totals Requirement2: All construction was complete and the assets were placed in service on August 1. Record partial year depreciation for the year ended December31. PROBLEM2: At September 30.2014, the account of Park Terrace Medical Center (PTMC) include the following: Account Receivable $144000 Allowance for Bad Debts (credit balance) 3100 During the last quarter of 2014, PTMC completed the following selected transactions: Dec.28 Wrote off accounts receivable as uncollectible: Sapphire Co., $1200; Owen Reis, $1100; and Pristine, Inc., $600. Dec31 Recorded bad debts expense based on the aging of accounts receivable, as follows: Age of accounts Accounts Receivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $164000 $104000 $38000 $17000 $5000 Estimated percent uncollectible 0.3% 3% 30% 35% Requirement1: Journalize the transactions. Dec 28: wrote off accounts receivable as uncollectible: Sapphire Co., $1200; Owen Reis, $1100; and Pristine, Inc., $600. Dec 31 Recorded bad debts expense based on the aging of accounts receivable Requirement 2: Open the allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance. (Enter the September 30 balance an d post the December 28 entry on the first line of the account. Calculate the adjusted balance on the second line of the account. Then post the December 31 adjusting entry on the third line of the account and calculate the December 31 adjusted balance on the last line of the account) Requirement 3: Show how Park terrace Medical Center should report net accounts receivable on its December 31, 2014, balance sheet