At December 31, 2016, certain accounts included in the property, plant, and equipment section of Carla Company’s balance sheet had the following balances. Land $231,000 Buildings 890,300 Leasehold improvements 660,600 Equipment 881,000 During 2017, the following transactions occurred. 1. Land site number 621 was acquired for $851,500. In addition, to acquire the land Carla paid a $53,300 commission to a real estate agent. Costs of $40,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $17,400. 2. A second tract of land (site number 622) with a building was acquired for $419,800. The closing statement indicated that the land value was $300,800 and the building value was $119,000. Shortly after acquisition, the building was demolished at a cost of $40,700. A new building was constructed for $331,000 plus the following costs. Excavation fees $38,300 Architectural design fees 10,900 Building permit fee 2,500 Imputed interest on funds used during construction (stock financing) 8,600 The building was completed and occupied on September 30, 2017. 3. A third tract of land (site number 623) was acquired for $650,900 and was put on the market for resale. 4. During December 2017, costs of $88,600 were incurred to improve leased office space. The related lease will terminate on December 31, 2019, and is not expected to be renewed. (Hint: Leasehold improvements should be handled in the same manner as land improvements.) 5. A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $87,300, freight costs were $3,200, installation costs were $2,400, and royalty payments for 2017 were $17,700. (a) Calculate the balance at December 31, 2017 in each of the following balance sheet accounts. Disregard the related accumulated depreciation accounts. Balance at December 31, 2017 Land $ Buildings $ Leasehold Improvements $ Equipment $
Land | $ 1,618,900.00 |
Buildings | $ 1,273,000.00 |
Leasehold improvements | $ 749,200.00 |
Equipment | $ 973,900.00 |
Working Note-
Carla Company | |
Analysis of Land Account | |
Balance at January 1, 2017 | $ 231,000.00 |
Land site number 621 | |
Acquisition cost | $ 851,500.00 |
Commission to real estate agent | $ 53,300.00 |
Clearing costs | $ 40,000.00 |
Less: Amounts recovered | $ (17,400.00) |
Total land site number 621 | $ 1,158,400 |
Land site number 622 | |
Land value | $ 300,800.00 |
Building value | $ 119,000.00 |
Demolition cost | $ 40,700.00 |
Total land site number 622 | $ 460,500.00 |
Balance at December 31, 2017 | $ 1,618,900.00 |
Carla Company | |
Analysis of Buildings Account | |
Balance at January 1, 2017 | $ 890,300.00 |
Construction cost | $ 331,000.00 |
Excavation fees | $ 38,300.00 |
Architectural design fees | $ 10,900.00 |
Building permit fee | $ 2,500.00 |
Balance at December 31, 2017 | $ 1,273,000.00 |
Carla Company | |
Analysis of Leasehold Improvements Account | |
Balance at January 1, 2017 | $ 660,600.00 |
Improve leased office space | $ 88,600.00 |
Balance at December 31, 2017 | $ 749,200.00 |
Carla Company | |
Analysis of Equipment Account | |
Balance at January 1, 2017 | $ 881,000.00 |
Invoice Price | $ 87,300.00 |
Freight | $ 3,200.00 |
Installation cost | $ 2,400.00 |
Balance at December 31, 2017 | $ 973,900.00 |
At December 31, 2016, certain accounts included in the property, plant, and equipment section of Carla...
At December 31, 2016, certain accounts included in the property, plant, and equipment section of Bridgeport Company's balance sheet had the following balances. Land $237,700 Buildings 905,300 Leasehold improvements 665,200 Equipment 882,900 During 2017, the following transactions occurred. 1. Land site number 621 was acquired for $853,100. In addition, to acquire the land Bridgeport paid a $55,700 commission to incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $15,500....
At December 31, 2016, certain accounts included in the property,
plant, and equipment section of Windsor Company’s balance sheet had
the following balances.
Land
$239,600
Buildings
895,900
Leasehold improvements
660,200
Equipment
878,700
During 2017, the following transactions occurred.
1.
Land site number 621 was acquired for $858,700. In addition, to
acquire the land Windsor paid a $57,400 commission to a real estate
agent. Costs of $43,600 were incurred to clear the land. During the
course of clearing the land, timber...
At December 31, 2019, certain accounts included in the property, plant, and equipment section of Blossom Company's balance sheet had the following balances. Land Buildings Leasehold improvements Equipment $238,200 905,200 661,900 883,800 During 2020, the following transactions occurred. 1. Land site number 621 was acquired for $850,800. In addition, to acquire the land Blossom paid a $53,000 commission to a real estate agent. Costs of $36,200 were incurred to clear the land. During the course of clearing the land, timber...
At December 31, 2019, certain accounts included in the property, plant, and equipment section of Whispering Winds Corporation's statement of financial position had the following balances: Land $309,670 Buildings-Structure 882,700 Leasehold Improvements 704,910 Equipment 844,960 During 2020, the following transactions occurred: 1. Land site No. 621 was acquired for $799,660 plus a fee of $6,670 to the real estate agent for finding the property. Costs of $33,210 were incurred to clear the land. In clearing the land, topsoil and gravel...
PROBLEMS 10-1 (L01) EXCEL (Classification of Acquisiti in the property, plant, and equipment section of Reagan C her Asset Costs) At December 31,2016, certain accounts included ompany e sheet ha d the following Land Buildings Leasehold i Equipment During 2017, the following transactions occurred. 1. Land site number 621 was acquired for $850,000. In addition, to acquire the land Reagan paid a $51,000 commission to a real estate agent. Costs of $35,000 were incurred to clear the land. During the...
2018, certain accounts included in the property, plant, and cu 10-4 Comprehensive At December 31, 2018, co LO 10.2 10.2 of Townsand Company's balance sheet had the following b of Towns LO 10.5 AICPA Land $100,000 Adapted Buildings 800,000 Leasehold improvements 500,000 hinery and equipment 700,000 During 2019, the following transactions occurred: 1. Land site number 621 was acquired for S1.000.000. Additionally S60,000 commission to a real estate agent. Co FUUUU. Additionally, to acquire the land. Townsand paid a on...
I need some help please
P10-1 (Classification of Acquisition and Other Asset Costs) At December 31, 2011, certain accounts included in the property, plant, and equipment section of Reagan Company's balance sheet had the Land $890,000 $660,000 Leasehold improvements During 2014 the following transactions occurresd 1 Land site number 62 1 was acquired for「S850000コIn addition, toi quire the land Reagan paid a $35,000 were incurred $51,000commission to a real estate agent. Costs of to clear the land. During the course...
Selected accounts included in the property, plant, and equipment section of Windsor Corporation’s balance sheet at December 31, 2016, had the following balances. Land $ 348,000 Land improvements 162,400 Buildings 1,276,000 Equipment 1,113,600 During 2017, the following transactions occurred. 1. A tract of land was acquired for $ 174,000 as a potential future building site. 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 23,200 shares of Windsor’s common stock. On the acquisition...
Selected accounts included in the property, plant, and equipment section of Whispering Corporation's balance sheet at December 31, 2016, had the following balances. Land Land improvements 170,800 Buildings Equipment $ 366,000 1,342,000 1,171,200 During 2017, the following transactions occurred. 1. 2. Atract of land was acquired for $183,000 as a potential future building site. A plant facility consisting of land and building was acquired from Mendota Company in exchangefor 24,400 shares of Whispering's common stock. On the acquisition date, Whispering's...
At December 31, 2020, Cord Company's plant asset and accumulated
depreciation and amortization accounts had balances as follows:
Category
Plant Asset
Accumulated Depreciation
and Amortization
Land
$
185,000
$
—
Buildings
2,000,000
338,900
Equipment
1,625,000
327,500
Automobiles and trucks
182,000
110,325
Leasehold improvements
236,000
118,000
Land improvements
—
—
Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Equipment—Straight line; 10 years.
Automobiles and trucks—200% declining balance; 5 years, all
acquired after 2017.
Leasehold improvements—Straight line.
Land improvements—Straight line....