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Required: Prepare a schedule analyzing the changes in each of the plant assets during 2024. Land Land improvements Building Equipment Answer is complete but not entirely correct. PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2024 Increase Balance 12/31/2023 $430,000 220,000 1,900,000 1,174,000 $ 434,000 ( 18,500 21,400 335,000 Decrease Balance 12/31/2024 S 864,000 220,000 1,939,100 1,509,000

Required: Prepare a schedule analyzing the changes in each of the plant assets during 2024. Land Land improvements Building Equipment Answer is complete but not entirely correct. PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2024 Increase Balance 12/31/2023 $430,000 220,000 1,900,000 1,174,000 $ 434,000 ( 18,500 21,400 335,000 Decrease Balance 12/31/2024 S 864,000 220,000 1,939,100 1,509,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Land Land improvements Building Equipment Automobiles Plant Asset Accumulated Depreciation $ 430,000 220,000 1,900,000 1,174,000 190,000 $- 53,000 358,000 413,000 120,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $300,000, which included a $6,300 charge for freight. Installation costs of $35,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $27,000. The fair value of the building on the day of the donation was $18,500. c. On May 1, 2024, expenditures of $58,000 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 November 1, 2024, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's common stock that had a market price of $36 per share. Pell paid legal fees and title insurance totaling $31000 Shortly after arnuisition the building wae razorl at a cost of $43000 in anticination of new building
Transcribed Image Text:The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Land Land improvements Building Equipment Automobiles Plant Asset Accumulated Depreciation $ 430,000 220,000 1,900,000 1,174,000 190,000 $- 53,000 358,000 413,000 120,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $300,000, which included a $6,300 charge for freight. Installation costs of $35,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $27,000. The fair value of the building on the day of the donation was $18,500. c. On May 1, 2024, expenditures of $58,000 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 November 1, 2024, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's common stock that had a market price of $36 per share. Pell paid legal fees and title insurance totaling $31000 Shortly after arnuisition the building wae razorl at a cost of $43000 in anticination of new building
$31,000. Shortly after acquisition, the building was razed at a cost of $43,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $16,850 cash and an old automobile purchased for $22,000 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14,300. The fair value of the old automobile was $4,550. Required: Prepare a schedule analyzing the changes in each of the plant assets during 2024. Land Land improvements Building Equipment Land Land improvements Building Answer is complete but not entirely correct. PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2024 Balance 12/31/2023 Increase $ 430,000 $ 434.000 220,000 1,900,000 Show Transcribed Text Equipment Automobiles Totals 1,174,000 18,500✔ 21,400 335,000✔ 1,174,000 190,000 $ 3,914,000 J Decrease Answer is complete but not entirely correct. PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2024 Balance 12/31/2023 $ 430,000 220,000 1,900,000 Increase $ 434,000 18,500 21,400 335,000✔ Balance 12/31/2024 S 864,000 220,000 1,939,100x 1,509,000 $ $ 808,900 $ Decrease Balance 12/31/2024 864,000 220,000✔ $ 1,939,100 x 1,509,000✔ 168,000✔ 22,000 22,000 $ 4,700,100
Transcribed Image Text:$31,000. Shortly after acquisition, the building was razed at a cost of $43,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $16,850 cash and an old automobile purchased for $22,000 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14,300. The fair value of the old automobile was $4,550. Required: Prepare a schedule analyzing the changes in each of the plant assets during 2024. Land Land improvements Building Equipment Land Land improvements Building Answer is complete but not entirely correct. PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2024 Balance 12/31/2023 Increase $ 430,000 $ 434.000 220,000 1,900,000 Show Transcribed Text Equipment Automobiles Totals 1,174,000 18,500✔ 21,400 335,000✔ 1,174,000 190,000 $ 3,914,000 J Decrease Answer is complete but not entirely correct. PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2024 Balance 12/31/2023 $ 430,000 220,000 1,900,000 Increase $ 434,000 18,500 21,400 335,000✔ Balance 12/31/2024 S 864,000 220,000 1,939,100x 1,509,000 $ $ 808,900 $ Decrease Balance 12/31/2024 864,000 220,000✔ $ 1,939,100 x 1,509,000✔ 168,000✔ 22,000 22,000 $ 4,700,100
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