Write an accounting essay 300-400 words as the file required.

CAPITALIZE COST vs. EXPENSE the work Entre Preneur, Inc., a public company, has a chain of fine restaurants, and their \"prospector\" found a site for the next new haute cuisine restaurant. The site was vacant, but it was once a gasoline and service station. The already approved proposal was immediately underway, as an appropriation was open for funding the new site. Now operational, the spending, shown below by item, accumulated in the CIP account but was not distributed. The June 30 and Quarter 2 Close needs this done, so classification of items cannot be delayed. The restaurant is completed and operational as of May 31. Required: 1. Prepare an essay describing the project accounting and addressing the classification of the costs as capital or expense, in 300 to 400 words. Cite the ASC as needed source(s). Questions below are intended to guide your essay work. In light of the activities and results identified above, what is the appropriate accounting? What does this work constitute? What is/are the end result(s) of the activities? How do you label these events? (or, How do you apply the buzz words common in industry?) 2. Prepare the journal entries (JE), citing principles applied to resolve the Capital vs. Expense. Provide a journal schedule of the JE's in good form to accompany the essay, which are project closing entries. (Numbering the JE's will allow you to reference them, as needed, in your essay.) Assume the half year convention for the initial depreciation journal entry or entries at December 31, the yearend. Payoff the contractor, eliminating the 10% final payment. Labels that could prove useful for the journal entries and discussion: Appropriation-Placed in Service Date, June 30 Construction in Progress (CIP) Capital Project Land Leasehold improvements Facilities (as Real Estate) Equipment F&F Furniture & Fixtures Service LivesBuilding & Leasehold 40 years, Equipment 15 years, F&F 10 years All transactions are in CIP for preparing a Journal of Entries in good form for distributing these events: 1. Consulting fees including travel for the prospector, who visited 50 cities, $15,000. 2. Purchase of land $900,000 3. Closing costs on land purchase for legal work, $9,000, and real estate commission, $18,000 4. Architectural design for site and facility, $23,000 5. Station demolished $30,000 6. Underground tank removal/disposal for regulatory compliance $40,000 7. Soil refinement for regulatory compliance $30,000 8. Avoidable interest during construction $22,000 9. Restaurant facility fully equipped had a planned cost of $1,800,000. When completed, 9a. the building was $1,150,000, paid as progress payments and included 10% withheld from payment until Dec 31. 9b. The equipment ran $450,000 from another supplier. 9c. The furniture and fixtures were $300,000 from a third source. pg. 1