Requirement 1. Show how to account for each of? MMS's costs by listing the cost under the correct account. Determine the total cost of each asset.

Start with items a through? i, next, enter items j through? q, and lastly calculate the totals for each asset category. ?(Hold all decimals for interim calculations. Round your final answers to the nearest dollar. Leave any unused cells blank.? )

		Land		Office
Item	Land	Improvements	Warehouse	Building	Furniture
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
q.

Totals

Requirement 2. Assuming that all construction was complete and the assets were placed in service on September? 1, 2014, record depreciation for the year ended December? 31, 2014.

Begin with land improvements depreciation. ?(Record debits? first, then credits. Explanations are not required. Hold all decimals for interim calculations. Round your final answer to the nearest? dollar.)

Journal Entry
Date		Accounts	Debit	Credit
Dec	31

?Now, complete the entry for the warehouse depreciation. ?(Hold all decimals for interim calculations. Round your final answer to the nearest? dollar.)

Journal Entry
Date		Accounts	Debit	Credit
Dec	31

?Next, complete the entry for the office building depreciation. ?(Hold all decimals for interim calculations. Round your final answer to the nearest? dollar.)

Journal Entry
Date		Accounts	Debit	Credit
Dec	31

Complete the entry for the furniture depreciation. ?(Hold all decimals for interim calculations. Round your final answer to the nearest? dollar.)

Journal Entry
Date		Accounts	Debit	Credit
Dec	31

Requirement 3. Identify the management issues included in this problem and what effect they have on business operations.

This problem shows how to determine the cost of a CURRENT ASSET / PROPERTY, PLANT, EQUIPMENT asset. It also demonstrates the computation of depreciation for a CURRENT ASSET / PROPERTY, PLANT, EQUIPMENT. Because virtually all businesses use CURRENT ASSET / PROPERTY, PLANT, EQUIPMENT.

A manager needs to understand how those? assets' costs and depreciation amounts are determined. Depreciation affects COST / CASH / EXPENSES / NET INCOME / REVENUE.

Managers need to understand the? meaning, components, and computation of COST / CASH / EXPENSES / NET INCOME / REVENUE because often their performance is measured by how much / CASH / NET INCOME / REVENUE the business earns.

Assume Moonlight Moving & Storage Ltd. (MMS) of Regina, Saskatchewan, incurred the following costs in acquiring land, making land improvements, and constructing and furnishing its own storage warehouse 1 (Click the icon to view the costs of items a to i) (i Click the icon to view the costs of items j to q More Info More Info nswers to the nearest dollar. I j. Renovation of the office buildin $38,400 a. Purchase price of 4 acres of land, including an old building that will be used for an office (land fair value is $265,000, k. Interest cost on construction loan for warehouse. 9.600 building fair value is $71,000) $295.000 I. Landscaping trees and shrubs 8,100 b. Landscaping (additional dirt and earth moving) 10.700 m. Parking lot, concrete walks, and lights on the property. 56,900 c. Fence around the land. 31,600 n. Concrete, wood, and other materials used in the construction d. Lawyer fee for title search on the land. of the warehouse 235,000 e. Delinquent real estate taxes on the land to be paid by MMS. 7.500 o. Supervisory salary of construction supervisor (85% to f. Company signs at front of the company property warehouse, 5% to land improvements. 10% to office building) 64.000 3.400 p. Office furniture. 112,700 g. Building permit for the warehouse 910 q. Trans and installation of furniture. portation 2.800 h. Architect fee for the design of the warehouse. 21,980 i. Masonry, carpentry, roofing, and other labour to construct the Assume MMS depreciates buildings over 40 years, land improvements over 805.000 20 years, and fumiture over 8 years, all on a straight-ine basis with zero warehouse residual value. Assume MMS depreciates buildings over 40 years, and improvements over 20 years, and furniture over 8years, all on a straight-line basis with zero residual value. Print Done Print Done