Requirement 2 options: (All the blanks has the same options)

Requirement 3 options

Blank one: A current asset, a current liability, or a property, plant, and equipment asset.

Blank two: Current assets, (property, plant, and equipment)

Blank three Current assets, (property, plant, and equipment)

Blank four: Cash, costs, expenses, net income, revenue

Blank five: Cash, costs, expenses, net income, revenue

Blank six: Cash, net income, revenue

Items a. To i. a. Purchase price of 4 acres of land, including an old building that will be used for an office (land fair value is $285,000, building fair value is $70,000)....... $315,000 b. Landscaping (additional dirt and earth moving). 10,600 c. Fence around the land... 18,720 d. Lawyer fee for title search on the land... 600 e. Delinquent real estate taxes on the land to be paid by MMS. 7,800 f. Company signs at front of the company property... 3,600 g. Building permit for the warehouse..... 970 h. Architect fee for the design of the warehouse... 21,900 i. Masonry, carpentry, roofing, and other labour to construct the warehouse......... 815,000 Assume MMS depreciates buildings over 40 years, land improvements over 20 years, and furniture over 8 years, all on a straight-line basis with zero residual value. Print Done Items j. To q. j. Renovation of the office building...... $38,400 k. Interest cost on construction loan for warehouse....... 9,100 I. Landscaping (trees and shrubs)......... 7,600 m. Parking lot, concrete walks, and lights on the property....... 56,200 n. Concrete, wood, and other materials used in the construction of the warehouse..... 238,000 o. Supervisory salary of construction supervisor (85% to warehouse, 5% to land improvements, 10% to office building) 62,000 p. Office furniture........ 112,100 q. Transportation and installation of furniture.... 2,000 Assume MMS depreciates buildings over 40 years, land improvements over 20 years, and furniture over 8 years, all on a straight-line basis with zero residual value. Print Done - x Requirements 1. 2. Show how to account for each of MMS's costs by listing the cost under the correct account. Determine the total cost of each asset. Assuming that all construction was complete and the assets were placed in service on September 1, 2020, record depreciation for the year ended December 31, 2020. Round to the nearest dollar. Identify the management issues included in this problem and what effect they have on business operations. 3. Print Done Requirement 1. Show how to account for each of MMS's costs by listing the cost under the correct account. Determine the total cost of each asset. (Hold all decimals for interim calculations. Round your final answers to the nearest dollar. Leave any unused cells blank.) Land Item Land Improvements Warehouse Office Building Furniture a. b. C. d. e. f. g. h. i. j. k. 1. m. n. o. p. 9. Totals Requirement 2. Assuming that all construction was complete and the assets were placed in service on September 1, 2020, record depreciation for the year ended December 31, 2020. Begin with land improvements depreciation. (Record debits first, then credits. Explanations are not required. Hold all decimals for interim calculations. Round your final answer to the nearest dollar.) Date Accounts Debit Credit Dec. 31 Now, complete the entry for the warehouse depreciation. (Hold all decimals for interim calculations. Round your final answer to the nearest dollar.) Date Accounts Debit Credit Dec. 31 Next, complete the entry for the office building depreciation. (Hold all decimals for interim calculations. Round your final answer to the nearest dollar.) Date Accounts Debit Credit Dec. 31 Complete the entry for the furniture depreciation. (Hold all decimals for interim calculations. Round your final answer to the nearest dollar.) Date Accounts Debit Credit Dec. 31 Requirement 3. Identify the management issues included in this problem and what effect they have on business operations. Because virtually all This problem shows how to determine the cost of It also demonstrates the computation of depreciation for businesses use a manager needs to understand how those assets' costs and depreciation amounts are determined. Depreciation affects understand the meaning, components, and computation of because often their performance is measured by how much the business earns. Managers need to Date Accounts Debit Credit Dec. 31 Accumulated Depreciation Furniture Next, compli Accumulated DepreciationLand for interim calculation Date Credit Accumulated DepreciationLand Improvements Dec. 31 Accumulated DepreciationOffice Building Accumulated DepreciationWarehouse Cash Complete th calculations. Round Date Depreciation ExpenseFurniture Credit Dec. 31 Depreciation ExpenseLand Depreciation Expense-Land Improvements Depreciation Expense-Office Building Requiremel nat effect they have on This problen Depreciation ExpenseWarehouse V It also dem