Book Store, Inc., opened an office in Maplewood, Minnesota. Book Store incurred the following costs in...

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Book Store, Inc., opened an office in Maplewood, Minnesota. Book Store 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 20 years, and furniture over 12 years, all on a straight-line basis with residual values of zero. Read the requirements. g. h. i. Item j. k 1. m. n. 0. P. 9. Totals Land Date Dec $ 306,900 Land: Improvements 6,400 52,400 7,300 4,840 104,640 400 1,260 513,000 Sales Building 9,700 35,640 $ 560,000 Garage Building Accounts 31 Depreciation Expense - Land Improvements Accumulated Depreciation - Land Improvements 41,980 3,520 $ $ 113,000 $ Debit Furniture 111 79,900 4,100 84,000 ... Credit Requirements 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. 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. 3. Why would a manager need to understand the concepts covered in this problem? 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 Print Done - X Data table a. Purchase price of land, including an old building that will be used for a garage (land market value is $325,000; building market value is $75,000) b. Grading (leveling) land C. Fence around the land d. Attorney fee for title search on the land e. Delinquent real estate taxes on the land to be paid by Book Store f. Company signs at entrance to the property Building permit for the sales building Architect fee for the design of the sales building Masonry, carpentry, and roofing of the sales building Renovation of the garage building k. Interest cost on construction loan for sales building Landscaping (trees and shrubs) 1. m. Parking lot and concrete walks on the property n. Lights for the parking lot and walkways o. Salary of construction supervisor (81% to sales building; 11% to land improvements; and 8% to garage building renovations) P. Office furniture for the sales building q. g. h. i. j. Transportation and installation of furniture $360,000 8,400 32,000 900 5,100 1,700 400 1,260 513,000 41,980 9,700 6,400 52,400 7,300 44,000 79,900 4,100 Book Store, Inc., opened an office in Maplewood, Minnesota. Book Store 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 20 years, and furniture over 12 years, all on a straight-line basis with residual values of zero. Read the requirements. g. h. i. Item j. k 1. m. n. 0. P. 9. Totals Land Date Dec $ 306,900 Land: Improvements 6,400 52,400 7,300 4,840 104,640 400 1,260 513,000 Sales Building 9,700 35,640 $ 560,000 Garage Building Accounts 31 Depreciation Expense - Land Improvements Accumulated Depreciation - Land Improvements 41,980 3,520 $ $ 113,000 $ Debit Furniture 111 79,900 4,100 84,000 ... Credit Requirements 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. 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. 3. Why would a manager need to understand the concepts covered in this problem? 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 Print Done - X Data table a. Purchase price of land, including an old building that will be used for a garage (land market value is $325,000; building market value is $75,000) b. Grading (leveling) land C. Fence around the land d. Attorney fee for title search on the land e. Delinquent real estate taxes on the land to be paid by Book Store f. Company signs at entrance to the property Building permit for the sales building Architect fee for the design of the sales building Masonry, carpentry, and roofing of the sales building Renovation of the garage building k. Interest cost on construction loan for sales building Landscaping (trees and shrubs) 1. m. Parking lot and concrete walks on the property n. Lights for the parking lot and walkways o. Salary of construction supervisor (81% to sales building; 11% to land improvements; and 8% to garage building renovations) P. Office furniture for the sales building q. g. h. i. j. Transportation and installation of furniture $360,000 8,400 32,000 900 5,100 1,700 400 1,260 513,000 41,980 9,700 6,400 52,400 7,300 44,000 79,900 4,100

Answer rating: 100% (QA)

Land Garage Buildiing Building Market ValueTotal Market Value Purchase Price 75000 x 360000 Explanat... View the full answer