Security, Inc., opened an office in Blaine, Minnesota Security incurred the following costs in acquiring land, making land improvements, and constructing and furnishing the new sales building Click the icon to view the financial data.) The company depreciates buildings over 30 years, land improvements over 25 years, and fumiture over 12 years, all on a straight-line basis with residual values of zero Read the requirements Requirement 1. Identify the proper account (Land, Land Improvements, Sales Building, Garage Building, or Furniture) for each of the costs listed in the problem. Calculate 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. (If an input field is not used in the table leave the field empty, do not enter a zero. Round percentages to two places when calculating proportions (XXX%) and use your computed percentages throughout. Round your final answers to the nearest whole dollar) Land Improvements Sales Building Garage Building Item Land Furniture a b c d e f g h. 1 Land Improvements Sales Building Garage Building Item Land Furniture i K m. n 0 9. Totals 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. (Record debits first, then credits. Exclude 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 Date Accounts Debit Credit 31 Dec Next, record the sales building depreciation expense. Security, Inc., opened an office in Blaine, Minnesota Security incurred the following costs in acquiring land, making land improvements, and constructing and furnishing the new sales building (Click the icon to view the financial data) The company depreciates buildings over 30 years, land improvements over 25 years, and furniture over 12 years, all on a straight-line basis with residual values of zero. Read the requirements Totals Dec 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. (Record debits first, then credits. Exclude 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 Data Table Journal Entry Date Accounts Debit Credit 31 a. 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 585,000) 5 360,000 b. Grading (leveling) land 8,100 Next, record the sales building depreciation expense. c. Fence around the land 31,500 700 Journal Entry d. Attorney fee for title search on the land Delinquent real estate taxes on the land to be paid by Security 6,000 Date Accounts Debit Credit f. Company signs at entrance to the property 1,600 Dec 31 9 Building permit for the sales building 100 Architect fee for the design of the sales building 5,440 Masonry, carpentry, and roofing of the sales building 512.000 i Renovation of the garage building 35,360 Now record the garage building depreciation expense. k. Interest cost on construction loan for sales building 9,400 Journal Entry Landscaping (troes and shrubs) 6,300 Date Accounts Debit Credit m. Parking lot and concrete walks on the property 52,500 Dec 31 n. Lights for the parking lot and walkways 7,200 o Salary of construction supervisor (87% to sales building, 10% to land improvements, and 3% to garage building renovations) 38,000 p. Office furniture for the sales building 79,100 q Transportation and Installation of furniture 900 Finish by recording the furniture depreciation expense h i. Journal Entry Accounts Date Debit Credit Dec 31 Print Done 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 of those assets, which affects manager needs to understand how those assets' costs and computations are determined Managers need to understand the meaning, components, and computation of amount Because virtually all businesses use these assets, a because often their performance is measured by this Choose from any list or enter any number in the input fields and then continue to the next question Calculator Time Remaining: 01:37:22 Next