Description of this paper

Gegax Manufacturing inccurred the following costs...

Description

Solution


Question

Gegax Manufacturing inccurred the following costs in acquiring land, making land improvements, and furnishing a new building. a.purchase price of four acres of land-$200,000 b.Additional dirt and earthmoving-$8,100 c.Fence around the boundary of the property-$17,600 d.Attorney fee for title search on the land-$1,000 e.Unpaid property taxes on the land to be paid by Gegax-$5,900 f.Company sighns at the front of the property-$4,400 g.Building permit for the building-500 h.Architect's fee for the design of the building-$22,500 i.Labor to construct the building-$709,000 j.Materials used to construct the building-$224,000 k.Landscaping-$6,400 l.parking lot and concrete walks-$29,700 m.Lights for the parking lot and walksways-$10,300 n.Salary of construction supervisor(85% to building;15% to parking lot and concrete walks)-$40,000 o.Furniture for the building-$107,100 p.Transportation and installation of furniture-$2,100 Gegax depreciates buildings over 40years, land improvements over 20years, and furniture over 8years, all on a straight-line basis with zero residual value. Requirements 1.set up columns for Land, Land improvements, Vuilding, and Furniture. Show how to account for each cost by listing the cost under the correct account.Determine the total cost of each asset. 2.All construction was complete and assets were okaced in service on May1. Record partial-year depreciation for the uear ended December 31. Round to the nearest dollar. I attached a file but it is a just practice file. Please write on the new MS Excel!! Thank you!!

 

Paper#6293 | Written in 18-Jul-2015

Price : $25
SiteLock