At December 31, 2023, 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 $ — Land improvements — — Buildings 2,000,000 438,502 Equipment 1,625,000 327,500 Automobiles and trucks 182,000 110,325 Leasehold improvements 236,000 118,000 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 2020. Leasehold improvements—Straight line. Land improvements—Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2024 and other information: On January 6, 2024, a plant facility consisting of land and building was acquired from King Corporation in exchange for 35,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $60 a share. Current assessed values of land and building for property tax purposes are $255,000 and $595,000, respectively. On March 25, 2024, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $252,000. These expenditures had an estimated useful life of 12 years. The leasehold improvements were completed on December 31, 2020, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2026, was renewable for an additional four-year term. On April 30, 2024, Cord exercised the renewal option. On July 1, 2024, equipment was purchased at a total invoice cost of $335,000. Additional costs of $11,000 for delivery and $60,000 for installation were incurred. On September 30, 2024, Cord purchased a new automobile for $13,500. On September 30, 2024, a truck with a cost of $25,000 and a book value of $11,000 on date of sale was sold for $12,500. Depreciation for the nine months ended September 30, 2024, was $2,475. On December 20, 2024, equipment with a cost of $22,000 and a book value of $3,225 at date of disposition was scrapped without cash recovery. Required: Prepare a schedule analyzing the changes in each of the plant asset accounts during 2024. Do not analyze changes in accumulated depreciation and amortization. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2024.

At December 31, 2023, 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 $ — Land improvements — — Buildings 2,000,000 438,502 Equipment 1,625,000 327,500 Automobiles and trucks 182,000 110,325 Leasehold improvements 236,000 118,000 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 2020. Leasehold improvements—Straight line. Land improvements—Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2024 and other information: On January 6, 2024, a plant facility consisting of land and building was acquired from King Corporation in exchange for 35,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $60 a share. Current assessed values of land and building for property tax purposes are $255,000 and $595,000, respectively. On March 25, 2024, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $252,000. These expenditures had an estimated useful life of 12 years. The leasehold improvements were completed on December 31, 2020, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2026, was renewable for an additional four-year term. On April 30, 2024, Cord exercised the renewal option. On July 1, 2024, equipment was purchased at a total invoice cost of $335,000. Additional costs of $11,000 for delivery and $60,000 for installation were incurred. On September 30, 2024, Cord purchased a new automobile for $13,500. On September 30, 2024, a truck with a cost of $25,000 and a book value of $11,000 on date of sale was sold for $12,500. Depreciation for the nine months ended September 30, 2024, was $2,475. On December 20, 2024, equipment with a cost of $22,000 and a book value of $3,225 at date of disposition was scrapped without cash recovery. Required: Prepare a schedule analyzing the changes in each of the plant asset accounts during 2024. Do not analyze changes in accumulated depreciation and amortization. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2024.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

At December 31, 2023, 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	$ —
Land improvements	—	—
Buildings	2,000,000	438,502
Equipment	1,625,000	327,500
Automobiles and trucks	182,000	110,325
Leasehold improvements	236,000	118,000

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 2020.

Leasehold improvements—Straight line.

Land improvements—Straight line.

Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2024 and other information:

On January 6, 2024, a plant facility consisting of land and building was acquired from King Corporation in exchange for 35,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $60 a share. Current assessed values of land and building for property tax purposes are $255,000 and $595,000, respectively.
On March 25, 2024, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $252,000. These expenditures had an estimated useful life of 12 years.
The leasehold improvements were completed on December 31, 2020, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2026, was renewable for an additional four-year term. On April 30, 2024, Cord exercised the renewal option.
On July 1, 2024, equipment was purchased at a total invoice cost of $335,000. Additional costs of $11,000 for delivery and $60,000 for installation were incurred.
On September 30, 2024, Cord purchased a new automobile for $13,500.
On September 30, 2024, a truck with a cost of $25,000 and a book value of $11,000 on date of sale was sold for $12,500. Depreciation for the nine months ended September 30, 2024, was $2,475.
On December 20, 2024, equipment with a cost of $22,000 and a book value of $3,225 at date of disposition was scrapped without cash recovery.

Required:

Prepare a schedule analyzing the changes in each of the plant asset accounts during 2024. Do not analyze changes in accumulated depreciation and amortization.
For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2024.

CORD COMPANY
Depreciation and Amortization Expense
For the Year Ending December 31, 2024
Land Improvements
Buildings
Equipment
Automobiles and trucks
Leasehold improvements
Total depreciation and amortization expense for 2024
$
O

Land
Land improvements
Buildings
Equipment
Automobiles and trucks
Leasehold improvements
CORD COMPANY
Analysis of Changes in Plant Assets
For the Year Ending December 31, 2024
Balance
12/31/2023
Increase
$ 185,000
0
2,000,000
1,625,000
182,000
236,000
$ 4,228,000 $
0 $
Decrease
Balance
12/31/2024
0 $
0

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.