Question

Problem 11-2 Comprehensive problem: Chapters 10 and 11 [L011-2. 11-4] At December 2017. Cord Companys plantes et and m ed depreciation and counts had balances Category Plant Asset en tortiration 1, 1,225, Bullones Machinery and equipment Autocles and trucks Leasehold improvements Land Levents 20.30 Depreciation methods and useful Buildings-150% decening balance 25 years Machinery and equipment-Suah ne, years Automobiles and trus-150% deciring balance. 5 years, al Leasehold improvements-Straight line Land improvements-Straight line ieder 2014 Depreciation is computed to the nearest month and residual values are material Transactions during 2018 and other informacion a. On January 6, 2018, a plant facility conting of land and butong was acquired from King Cerpen exchange for 27.000 shares of Cord's common stock On this cardstock hadair value of $40 a Shere. Current sted v o land and building for property tax purposes are $154.000 and 5616.000 respectively On March 25, 2018 new pag os, streets and dewels the acquired plant facility were completed a total cost of 5204.000. These expenditures had an d useful lite of 12 years The lensehold improvements were completed on December 31, 2014, and had an estimated us e of eight yes. The related lease, which would terminate on December 31, 2020, was renewable for an additional four year term on April 30, 2018, Cord exercised the renewal option d. On July 1, 2018, machinery and equipment were purchased at a total invoice cost of $327000 Additional costs of $12,000 for delivery and $52.000 for installation were incurred. On August 30, 2018. Cord purchased a new automoble for $12700 f. On September 30, 2018 a truck with a cost of $24 200 and a book value of $9.400 on date of sale was sold for 511700 Depreciation for the nine months ended September 30, 2018. was $2,115 On December 20, 2018. a machine with a cost of $18.000 and abock value of $3.025 date of deposition was scraped without cash recovery Required: 1. Prepare a schedule analyeng the changes in each of the plan counts during 2018. Do not changes in accumulated depreciation and mortation 2. For each asset cregory, prepare a schedule showing depreciation or amor Son expense for the year ended December 31, 2018 Complete this question by entering your answers in the totshelow. o uts Bunga che mehre re Anayecha pesa Forme w intecember 2015 2 )

Answer 1

Cord Company Analysis of Changes in Plant Assets For the year ending December 31, 2018
	Balance	Increase	Decrease	Balance
	12/31/2017			12/31/2018
Land	$ 177,000	$ 216,000	-	$ 393,000
Land Improvements	-	204,000	-	204,000
Buildings	1,600,000	864,000	-	2,464,000
Machinery & Equipment	1,225,000	391,000	18,000	1,598,000
Automobiles & Trucks	174,000	12,700	24,200	162,500
Leasehold Improvements	220,000	-	-	220,000
Total	$ 3,396,000	$ 1,687,700	$ 42,200	$ 5,041,500