Vincent Royale, Inc., opened an office in Minneapolis, Minnesota. Vincent Royale 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 50 years, land improvements over 20 years, and furniture 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 (X.XX%), and use your computed percentages throughout. Round your final answers to the nearest whole dollar.) Item a. b. C. d. e. f. 9. h. i. Item j. k.. 1. m. n. 0. P.. q. Totals Land Land Land Improvements Land Improvements Sales Building Sales Building Garage Building Garage Building Furniture Furniture 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. to the nearest dollar.) Start by recording the depreciation on the land improvements. Data table 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 $85,000) b. Grading (leveling) land c. Fence around the land d. Attorey fee for title search on the land e. Delinquent real estate taxes on the land to be paid by Vincent Royale f. Company signs at entrance to the property. g. Building permit for the sales building h. Architect fee for the design of the sales building i. Masonry, carpentry, and roofing of the sales building 1. Renovation of the garage building k. Interest cost on construction loan for sales building 1. Landscaping (trees and shrubs) m. Parking lot and concrete walks on the property n. Lights for the parking lot and walkways Salary of construction supervisor (88% to sales building: 10% to land improvements; and 2% to garage building renovations) p. Office furniture for the sales building q. Transportation and installation of furniture 0. - X $360,000 8,000 31,600 1,000 5,200 1,700 100 112,740 515,000 39,760 9,600 6,400 52,400 7,400 37,000 79,400 1,800 nly round the amount you input in the cell 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. Date: Dec Date Dec 31 Next, record the sales building depreciation expense. Date Dec 31 Date: Dec Journal Entry 31 Accounts Now record the garage building depreciation expense. 31 Journal Entry Accounts Journal Entry Finish by recording the furniture depreciation expense. Accounts Journal Entry Accounts Debit Debit Debit Debit Credit Credit Credit Credit Requirement 3. Why would a manager need understand the concepts covered in this problem? This problem shows how to determine the cost of a need to understand the meaning, components, and computation of asset. It also demonstrates the computation of for a variety of those assets, which affects because often their performance is measured by this amount. . Because virtually all businesses use these assets, a manager needs to understand how those assets' costs and computations are determined. Managers Time Remaining: 01:00:15 Vincent Royale, Inc., opened an office in Minneapolis, Minnesota. Vincent Royale 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 50 years, land improvements over 20 years, and furniture 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 (X.XX%), and use your computed percentages throughout. Round your final answers to the nearest whole dollar.) Item a. b. C. d. e. f. 9. h. i. Item j. k.. 1. m. n. 0. P.. q. Totals Land Land Land Improvements Land Improvements Sales Building Sales Building Garage Building Garage Building Furniture Furniture 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. to the nearest dollar.) Start by recording the depreciation on the land improvements. Data table 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 $85,000) b. Grading (leveling) land c. Fence around the land d. Attorey fee for title search on the land e. Delinquent real estate taxes on the land to be paid by Vincent Royale f. Company signs at entrance to the property. g. Building permit for the sales building h. Architect fee for the design of the sales building i. Masonry, carpentry, and roofing of the sales building 1. Renovation of the garage building k. Interest cost on construction loan for sales building 1. Landscaping (trees and shrubs) m. Parking lot and concrete walks on the property n. Lights for the parking lot and walkways Salary of construction supervisor (88% to sales building: 10% to land improvements; and 2% to garage building renovations) p. Office furniture for the sales building q. Transportation and installation of furniture 0. - X $360,000 8,000 31,600 1,000 5,200 1,700 100 112,740 515,000 39,760 9,600 6,400 52,400 7,400 37,000 79,400 1,800 nly round the amount you input in the cell 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. Date: Dec Date Dec 31 Next, record the sales building depreciation expense. Date Dec 31 Date: Dec Journal Entry 31 Accounts Now record the garage building depreciation expense. 31 Journal Entry Accounts Journal Entry Finish by recording the furniture depreciation expense. Accounts Journal Entry Accounts Debit Debit Debit Debit Credit Credit Credit Credit Requirement 3. Why would a manager need understand the concepts covered in this problem? This problem shows how to determine the cost of a need to understand the meaning, components, and computation of asset. It also demonstrates the computation of for a variety of those assets, which affects because often their performance is measured by this amount. . Because virtually all businesses use these assets, a manager needs to understand how those assets' costs and computations are determined. Managers Time Remaining: 01:00:15