This is a corrected assignemnt, I am wondering how to get the equation for the journal entries? Where do those numbers come from? I understand everything except the last 4 journal entry solutions. Please help.

Book Store,

Inc., opened an office in

Cottage Grove,

Minnesota.

Book Store

incurred the following costs in acquiring land, making landimprovements, and constructing and furnishing the new sales building:

The company depreciates buildings over

30

years, land improvements over

15

years, and furniture over

12

years, all on a straight-line basis with residual values of zero.

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)

$360,000

b.

Grading (leveling) land

8,200

c.

Fence around the land

31,600

d.

Attorney fee for title search on the land

900

e.

Delinquent real estate taxes on the land to be paid by Book Store

5,500

f.

Company signs at entrance to the property

1,200

g.

Building permit for the sales building

800

h.

Architect fee for the design of the sales building

92,870

i.

Masonry, carpentry, and roofing of the sales building

513,000

j.

Renovation of the garage building

38,330

k.

Interest cost on construction loan for sales building

9,400

l.

Landscaping (trees and shrubs)

6,300

m.

Parking lot and concrete walks on the property

52,800

n.

Lights for the parking lot and walkways

7,300

o.

Salary of construction supervisor (87% to sales building; 10%

to land improvements; and 3% to garage building renovations)

39,000

p.

Office furniture for the sales building

79,100

q.

Transportation and installation of furniture

900

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.)

Land

Sales

Garage

Item

Land

Improvements

Building

Building

Furniture

a.

$283,500

$76,500

b.

8,200

c.

$31,600

d.

900

e.

5,500

f.

1,200

g.

$800

h.

92,870

i.

513,000

Land

Sales

Garage

Item

Land

Improvements

Building

Building

Furniture

j.

38,330

k.

9,400

l.

6,300

m.

52,800

n.

7,300

o.

3,900

33,930

1,170

p.

$79,100

q.

900

Totals

$298,100

$103,100

$650,000

$116,000

$80,000

Requirement 2. All construction was complete and the assets were placed in service on

April

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

Date

Accounts

Debit

Credit

Dec

31

Depreciation Expense - Land Improvements

5,155

Accumulated Depreciation - Land Improvements

5,155

Next, record the sales building depreciation expense.

Journal Entry

Date

Accounts

Debit

Credit

Dec

31

Depreciation Expense - Sales Building

16,250

Accumulated Depreciation - Sales Building

16,250

Now record the garage building depreciation expense.

Journal Entry

Date

Accounts

Debit

Credit

Dec

31

Depreciation Expense - Garage Building

2,900

Accumulated Depreciation - Garage Building

2,900

Finish by recording the furniture depreciation expense.

Journal Entry

Date

Accounts

Debit

Credit

Dec

31

Depreciation Expense - Furniture

5,000

Accumulated Depreciation - Furniture

5,000

Question

This is a corrected assignemnt, I am wondering how to get the equation for the journal entries? Where do those numbers come from? I understand everything except the last 4 journal entry solutions. Please help.

Book Store,

Inc., opened an office in

Cottage Grove,

Minnesota.

Book Store

incurred the following costs in acquiring land, making landimprovements, and constructing and furnishing the new sales building:

The company depreciates buildings over

30

years, land improvements over

15

years, and furniture over

12

years, all on a straight-line basis with residual values of zero.

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)	$360,000
b.	Grading (leveling) land	8,200
c.	Fence around the land	31,600
d.	Attorney fee for title search on the land	900
e.	Delinquent real estate taxes on the land to be paid by Book Store	5,500
f.	Company signs at entrance to the property	1,200
g.	Building permit for the sales building	800
h.	Architect fee for the design of the sales building	92,870
i.	Masonry, carpentry, and roofing of the sales building	513,000
j.	Renovation of the garage building	38,330
k.	Interest cost on construction loan for sales building	9,400
l.	Landscaping (trees and shrubs)	6,300
m.	Parking lot and concrete walks on the property	52,800
n.	Lights for the parking lot and walkways	7,300
o.	Salary of construction supervisor (87% to sales building; 10%
	to land improvements; and 3% to garage building renovations)	39,000
p.	Office furniture for the sales building	79,100
q.	Transportation and installation of furniture	900

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.)

Land

Sales

Garage

Item

Land

Improvements

Building

Furniture

a.

$283,500

$76,500

b.

8,200

c.

$31,600

d.

900

e.

5,500

f.

1,200

g.

$800

h.

92,870

i.

513,000

Land

Sales

Garage

Item

Land

Improvements

Building

Furniture

j.

38,330

k.

9,400

l.

6,300

m.

52,800

n.

7,300

o.

3,900

33,930

1,170

p.

$79,100

q.

900

Totals

$298,100

$103,100

$650,000

$116,000

$80,000

Requirement 2. All construction was complete and the assets were placed in service on

April

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
Date	Accounts	Debit	Credit
Dec	31	Depreciation Expense - Land Improvements	5,155
		Accumulated Depreciation - Land Improvements		5,155

Next, record the sales building depreciation expense.

Journal Entry
Date	Accounts	Debit	Credit
Dec	31	Depreciation Expense - Sales Building	16,250
		Accumulated Depreciation - Sales Building		16,250

Now record the garage building depreciation expense.

Journal Entry
Date	Accounts	Debit	Credit
Dec	31	Depreciation Expense - Garage Building	2,900
		Accumulated Depreciation - Garage Building		2,900

Finish by recording the furniture depreciation expense.

Journal Entry
Date	Accounts	Debit	Credit
Dec	31	Depreciation Expense - Furniture	5,000
		Accumulated Depreciation - Furniture		5,000

Accepted Answer

Depreciation  under straight-line method 
= (cost - residual value)/useful life

Book Store​, ​Inc., opened an office in Cottage Grove​, Minnesota. Book Store incurred the following costs in acquiring​ land, making land​improvements, and constructing and furnishing the new sales​ building:

Book Store, Inc., opened an office in Cottage Grove, Minnesota. Book Store incurred the following costs in acquiring land, making landimprovements, and constructing and furnishing the new sales building: