The following payments were recorded in an account called "new projects"

Purchase price of real estate

300,000

New perimeter fence

15,000

Renovations to building 1 (Prepare it for use)

8,000

Construction of building 2

250,000

Paving of parking lot

17,000

Repairs to fence (October)

2,000

Landscaping of grounds

27,000

619,000

Depreciation (10%)

61,900

Closing balance

557,100

Required:

Determine the total cost of each of the following assets and prepare journal entries to make any necessary adjustments to the accounts, including depreciation.

• Land
• Building 1 (purchased with real estate)
• Building 2 (new construction)
• Land improvements

Note: The real estate purchase included land with an appraised value of 90,000 and a building with an appraised value of 270,000.

The buildings were both ready for occupancy on July 1. Depreciation for all assets is

10% per year on a declining balance basis. One-half depreciation is claimed in the first year.