On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $552,200 for real estate plus $29,500 cash in closing costs. The real estate included land appraised at $243,950; land improvements appraised at $77,350; and a building appraised at $273,700. (a) PPE Asset Appraised Values (b) Ratio of Individual Appraised Value to Total Appraised Value (a) Total Appraised Value (c) Cost Allocation (b) x Total Actual Cost Present the journal entry to record the purchase. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list View journal entry worksheet No Date General Journal 1 April 12, 2023 Land Land improvements Building Cash Debit Credit 243,950 77,350 260,400 581,700

On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $552,200 for real estate plus $29,500 cash in closing costs. The real estate included land appraised at $243,950; land improvements appraised at $77,350; and a building appraised at $273,700. (a) PPE Asset Appraised Values (b) Ratio of Individual Appraised Value to Total Appraised Value (a) Total Appraised Value (c) Cost Allocation (b) x Total Actual Cost Present the journal entry to record the purchase. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list View journal entry worksheet No Date General Journal 1 April 12, 2023 Land Land improvements Building Cash Debit Credit 243,950 77,350 260,400 581,700

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7P: Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset,...

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On April 12, 2020, Prism Ltd., a camera lens manufacturer, paid cash of $559,400 for real estate plus $30,100 cash in closing costs. The real estate included land appraised at $210,350; land improvements appraised at $78,130; and a building appraised at $312,520. PPE Asset (a) Appraised Values (b) Ratio of Individual Appraised Value to Total Appraised Value (a) Total Appraised Value (c) Cost Allocation (b) x Total Actual Cost Present the journal entry to record the purchase. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 Record the costs of lump-sum purchase.
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Selected accounts included in the property, plant, and equipment section of Kingbird Corporation's balance sheet at December 31, 2024, had the following balances. Land Land improvements Buildings Equipment 1. 2. During 2025, the following transactions occurred. 3. $426,000 198,800 Sales taxes 1,562,000 1,363,200 A tract of land was acquired for $213,000 as a potential future building site. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 28,400 shares of Kingbird's common stock. On the acquisition date, Kingbird's stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendota's books at $156,200 for land and $454,400 for the building at the exchange date. Current appraised values for the land and building, respectively, are $326,600 and $979,800. Items of machinery and equipment were purchased at a total cost of $568,000. Additional costs were incurred as follows. Installation…
At December 31, 2025, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets During 2026, the following selected cash transactions occurred. Apr. May June Date 1 Purchased land for $3,335,200. 1 Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. 1 Sold land for $2,425,600. The land cost $1,516,000. July 1 Purchased equipment for $1,667,600. Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. April 1 $26,520,000 11,934,000 60,640,000 7,580,000 May 1 Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated…
At December 31, 2019, certain accounts included in the property, plant, and equipment section of Blue Spruce Corporation’s statement of financial position had the following balances: Land $309,730 Buildings—Structure 882,700 Leasehold Improvements 704,930 Equipment 844,920 During 2020, the following transactions occurred: 1. Land site No. 621 was acquired for $799,790 plus a fee of $6,780 to the real estate agent for finding the property. Costs of $33,140 were incurred to clear the land. In clearing the land, topsoil and gravel were recovered and sold for $10,950. 2. Land site No. 622, which had a building on it, was acquired for $559,950. The closing statement indicated that the land’s assessed tax value was $308,680 and the building’s value was $101,830. Shortly after acquisition, the building was demolished at a cost of $27,640. A new building was constructed for $339,530 plus the following costs: Excavation fees $37,960 Architectural design…
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…
Dhapa
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Accumulated Depreciation 0 Land Land improvements Building Equipment Automobiles Plant Asset $ 395,000 193,500 1,590,000 1,248,000 159,000 Transactions during 2021 were as follows: $ 54,000 395,000 450,000 116,500 a. On January 2, 2021, equipment were purchased at a total invoice cost of $305,000, which included a $6,400 charge for freight. Installation costs of $36,000 were incurred. b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $34,000. The fair value of the building on the day of the donation was $21,400. c. On May 1, 2021, expenditures of $59,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On…
At December 31, 2019, certain accounts included in the property, plant, and equipment section of Concord Corporation’s statement of financial position had the following balances: Land $309,520 Buildings—Structure 882,660 Leasehold Improvements 704,970 Equipment 844,620 During 2020, the following transactions occurred: 1. Land site No. 621 was acquired for $799,820 plus a fee of $6,880 to the real estate agent for finding the property. Costs of $33,270 were incurred to clear the land. In clearing the land, topsoil and gravel were recovered and sold for $10,720. 2. Land site No. 622, which had a building on it, was acquired for $559,550. The closing statement indicated that the land’s assessed tax value was $308,860 and the building’s value was $101,820. Shortly after acquisition, the building was demolished at a cost of $27,990. A new building was constructed for $339,860 plus the following costs: Excavation fees $37,550 Architectural design fees…
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Plant Asset AccumulatedDepreciation Land $ 400,000 $ — Land improvements 205,000 50,000 Building 1,750,000 355,000 Equipment 1,168,000 410,000 Automobiles 175,000 117,000 Transactions during 2021 were as follows: On January 2, 2021, equipment were purchased at a total invoice cost of $285,000, which included a $6,000 charge for freight. Installation costs of $32,000 were incurred. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $24,000. The fair value of the building on the day of the donation was $17,000. On May 1, 2021, expenditures of $55,000 were made to repave parking lots at Pell’s plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn’t provide future…
The following information relates to Absolute Company for the year 2020: Determine the accounts and amounts taken to profit or loss relating to the investment property. Land Held as Investment Property (at cost) 5,000,000 Fair value at January 1, 2020 6,000,000 Fair value at December 31, 2020 6,800,000 Estimated disposal cost 300,000 Building Held as Investment Property Construction was completed at January 1, 2020 at a total cost of 20,000,000 Estimated useful life with no residual value 40 years Fair value at January 1, 2020 19,000,000 Fair value at December 31, 2020 20,000,000 Estimated disposal cost 500,000 Rent revenue recognized during 2020 3,000,000 Compensation paid to personnel for administrative and security 200,000 Real property taxes applicable to 2020 120,000 Costs of maintenance paid to an outsourced company 340,000
he plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Plant Asset Accumulated Depreciation Land $510,000 - Land Improvements 260,000 61,000 Building 2,300,000 366,000 Equipment 1,190,000 421,000 Automobiles 230,000 128,000 Transactions during 2021 were as follows: On January 2, 2021, equipment were purchased at a total invoice cost of $340,000, which included a $7,100 charge for freight. Installation costs of $43,000 were incurred. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $35,000. The fair value of the building on the day of the donation was $22,500. On May 1, 2021, expenditures of $66,000 were made to repave parking lots at Pell’s plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn’t provide future benefits beyond those originally…