INSTRUCTION:Question 1 already done. Only answer Question 2]NOTE: This is a very short Question that shouldnt take more than 10 minutesDeadline: 1hr. Am continuing with the test now2. Write the jo

Sonia Computers constructed a new training center in 2013. You have been hired to manage the training center. A review of the accounting records shows the following expenditures debited to an asset account called Training Center:

Attorney’s fee, land acquisition …………………………………..… $17,450

Cost of land ………………………………………………………..... 299000

Architect’s fee, building design .…………………………………... 51000

Building…………………………………………………………..…510,000

Parking lot and sidewalk …..…………………………………..….… 167,800

Electrical wiring, building …………………………………….…..… 82,000

Landscaping……………………………………………………….….. 27,500

Cost of surveying land ……………………………………………… 4,600

Training equipment, tables, and chairs ……………………………... 68,200

Installation of training equipment …………………………………... 34,000

Cost of grading the land…………………………………………..…. 7,000

Cost of changes in building to soundproof rooms ………………….. 7,000

Total account balance…………………………………………… $1,198,150

During the center's construction, an employee of Sonia Computers worked full time overseeing the project. He spent two months on the purchase and preparation of the site, six months on the construction, one month on land improvements, and one month on equipment installation and training room furniture purchase and setup. His salary of $32,000 during this ten-month period was charged to Administrative Expense. The training center was placed in operation on January 1, 2014.

Required

1. Prepare a schedule with the following four column (account) headings: Land, Land Improvements, Building, and Equipment. Place each of the above expenditures in the appropriate column. Total the columns.

2. Write the journal entry (entries) to record the long-term assets to the correct accounts. Land, Land Improvements, and Building assets were financed on mortgage payable. Furniture and Equipment were financed on a note payable.

SOLUTION

1. Schedule showing long-term assets and expenses should be prepared as follows

(2 months / 10 months) × $32,000 = $6400;

(1 month / 10 months) × $32,000 = $3200;

(6 months / 10 months) × $32,000 = $19200;

(1 month / 10 months) × $32,000 = $3200

2.