Property, Plant and Equipment
PPE-1) P & P Products is relocating their Human Resources department to an unused space that is closer to the main administration building. The 4,000 square foot space is empty and has not been used in several years. Jane, the VP of Personnel, is overseeing the conversion and relocation of the HR department. P & P Products maintenance department will perform the work. Jane has asked George, the maintenance foreman, to prepare a list of what needs to be completed in order to make the space ready for occupancy. George has provided the following list of tasks and their estimated costs. Assume that contractors will perform the construction and that the prices given include labor costs:
1. Painting (the current walls have paint peeling)-$15,000
2. Removal of old asbestos in the ceiling-$12,000
3. Replacing the wood floors with tile to increase the life of the space-$34,000
4. Installing wiring for computers-$18,000
5. Installing modular units for work space-$124,000
Required: Prepare any necessary entries for the items above.