Warehousing incurred the following costs in acquiring land and a building, making land improvements, and constructing and furnishing the company's office building for its own use.

Purchase price of two hectares of land, including an old building that will be for storage of maintenance equipment (land appraised market value is $1,300,000;building appraised market value is $300,000). . . . . . . . . . . . . .$1,150,000

b. Real estate taxes in arrears on the land to be paid by Martin Warehousing. . . . . . . . . . . . . . . . .6,600

c. Additional dirt and earth moving. . . . . . . . . . . . . . . . . . . . . . . . .6,600

d. Legal fees on the land acquisition. . . . . . . . . . . . . . . . . . . . . . .5,300

e. Fence around the boundary of the land. . . . . . . . . . . . . . . . . . .84,000

f. Building permit for the office building. . . . . . . . . . . . . . . . . .2,800

g. Architect fee for the design of the office building. . . . . . . . . . . .44,000

h.

Company signs near front and rear approaches to the company property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18,000

i.

Renovation of the storage building. . . . . . . . . . . . . . . . . . . .175,000

j. Concrete, wood, steel girders, and other materials used in the construction of the office building. . . . . . . . . . . . . . . 715,000

k. Masonry, carpentry, roofing, and other labour to construct the office building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .585,000

l. Parking lots and concrete walks on the property. . . . . . . . . . . .33,000

m. Lights for the parking lot, walkways, and company signs. . . . .12,500

n. Salary of construction supervisor (90 percent to office building and 10 percent to storage building). . . . . . . . . . . . . . 130,000

o. Office furniture for the office building. . . . . . . . . . . . . . . .165,000

p. Transportation of furniture from seller to the office building. . .3,200

Martin Warehousing amortizes buildings over30years, land improvements over20years, and furniture over10years, all on a straight-line basis with zero residual value.Required:

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

2. Assuming that all construction was complete and the assets were placed in service on February 25, record amortization for the year ended December 31. Round figures to the nearest dollar.

Requirement 1. Show how to account for each of

Martin's

costs by listing the cost under the correct account. Determine the total cost of each asset. We will first do items a through i, then items j through q, and finally totalling the columns. (Hold all decimals in interim calculations. Round your final answers to the nearest whole dollar. Leave any unused cells blank.)

Land

Office

Storage

Item

Land

Improvements

Building

Building

Furniture

a.

b.

c.

d.

e.

f.

g.

h.

i.

j.

k.

l.

m.

n.

o.

p.

Total

Requirement 2. Assuming that all construction was complete and the assets were placed in service on February 25, record amortization for the year ended December 31. Round figures to the nearest dollar.

First, record the amortization on the land improvements. (Record debits first, then credits. Explanations are not required. Hold all decimals in interim calculations. Round your final answer to the nearest dollar.)

Journal Entry
Date		Accounts	Debit	Credit
Dec.	31

Now record the office building amortization expense. (Hold all decimals in interim calculations. Round your final answer to the nearest dollar.)

Journal Entry
Date		Accounts	Debit	Credit
Dec.	31

Now record the storage building amortization expense. (Hold all decimals in interim calculations. Round your final answer to the nearest dollar.)

Journal Entry
Date		Accounts	Debit	Credit
Dec.	31

Finish by recording the furniture amortization expense. (Hold all decimals in interim calculations. Round your final answer to the nearest dollar.)

Journal Entry
Date		Accounts	Debit	Credit
Dec.	31