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9. LO3 Jie owns a lawn mower repair business. Her repair shop is in a building she con- structed on the lot on which her personal residence is located. How should Jie account for each of the following? a. Interest paid on her home mortgage, $9,200. Interest of $4,000 is paid on a sepa- rate loan that she used to construct the repair shop. b. Property taxes, $1,800. c. Electricity bills, $3,800. (Jie is not billed separately for electricity service to her repair shop.) d. Cost of remodeling the kitchen, $3,200. e. Telephone bills, $970. Jie uses one telephone number for her residence and her business. The cost of having an extra line to the shop is $30 per month. The $970 includes a charge of $250 for an ad in the business section of the telephone directory. f. Cost of operating her van for one year, $7,800. Jie uses the van in her repair busi- ness and for personal use.
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