Selected accounts included in the property, plant, and equipment section of Splish Corporation’s balance sheet at December 31, 2019, had the following balances. Land $378,000 Land improvements 176,400 Buildings 1,386,000 Equipment 1,209,600 During 2020, the following transactions occurred. 1. A tract of land was acquired for $189,000 as a potential future building site. 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 25,200 shares of Splish’s common stock. On the acquisition date, Splish’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 $138,600 for land and $403,200 for the building at the exchange date. Current appraised values for the land and building, respectively, are $289,800 and $869,400. 3. Items of machinery and equipment were purchased at a total cost of $504,000. Additional costs were incurred as follows. Freight and unloading $16,380 Sales taxes 25,200 Installation 32,760 4. Expenditures totaling $119,700 were made for new parking lots, streets, and sidewalks at the corporation’s various plant locations. These expenditures had an estimated useful life of 15 years. 5. A machine costing $100,800 on January 1, 2012, was scrapped on June 30, 2020. Double-declining-balance depreciation has been recorded on the basis of a 10-year life. 6. A machine was sold for $25,200 on July 1, 2020. Original cost of the machine was $55,440 on January 1, 2017, and it was depreciated on the straight-line basis over an estimated useful life of 7 years and a salvage value of $2,520. (a) Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. (Hint: Disregard the related accumulated depreciation accounts.) Balance at December 31, 2020 Land $ Land Improvements $ Buildings $ Equipment $
Selected accounts included in the property, plant, and equipment section of Splish Corporation’s balance sheet at December 31, 2019, had the following balances. Land $378,000 Land improvements 176,400 Buildings 1,386,000 Equipment 1,209,600 During 2020, the following transactions occurred. 1. A tract of land was acquired for $189,000 as a potential future building site. 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 25,200 shares of Splish’s common stock. On the acquisition date, Splish’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 $138,600 for land and $403,200 for the building at the exchange date. Current appraised values for the land and building, respectively, are $289,800 and $869,400. 3. Items of machinery and equipment were purchased at a total cost of $504,000. Additional costs were incurred as follows. Freight and unloading $16,380 Sales taxes 25,200 Installation 32,760 4. Expenditures totaling $119,700 were made for new parking lots, streets, and sidewalks at the corporation’s various plant locations. These expenditures had an estimated useful life of 15 years. 5. A machine costing $100,800 on January 1, 2012, was scrapped on June 30, 2020. Double-declining-balance depreciation has been recorded on the basis of a 10-year life. 6. A machine was sold for $25,200 on July 1, 2020. Original cost of the machine was $55,440 on January 1, 2017, and it was depreciated on the straight-line basis over an estimated useful life of 7 years and a salvage value of $2,520. (a) Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. (Hint: Disregard the related accumulated depreciation accounts.) Balance at December 31, 2020 Land $ Land Improvements $ Buildings $ Equipment $
Related questions
Question
Selected accounts included in the property, plant, and equipment section of Splish Corporation’s
| Land | $378,000 | |
| Land improvements | 176,400 | |
| Buildings | 1,386,000 | |
| Equipment | 1,209,600 |
During 2020, the following transactions occurred.
| 1. | A tract of land was acquired for $189,000 as a potential future building site. | |
| 2. | A plant facility consisting of land and building was acquired from Mendota Company in exchange for 25,200 shares of Splish’s common stock. On the acquisition date, Splish’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 $138,600 for land and $403,200 for the building at the exchange date. Current appraised values for the land and building, respectively, are $289,800 and $869,400. | |
| 3. | Items of machinery and equipment were purchased at a total cost of $504,000. Additional costs were incurred as follows. |
| Freight and unloading | $16,380 | |
| Sales taxes | 25,200 | |
| Installation | 32,760 |
| 4. | Expenditures totaling $119,700 were made for new parking lots, streets, and sidewalks at the corporation’s various plant locations. These expenditures had an estimated useful life of 15 years. | |
| 5. | A machine costing $100,800 on January 1, 2012, was scrapped on June 30, 2020. Double-declining-balance depreciation has been recorded on the basis of a 10-year life. | |
| 6. | A machine was sold for $25,200 on July 1, 2020. Original cost of the machine was $55,440 on January 1, 2017, and it was |
(a)
Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. (Hint: Disregard the related
| Balance at December 31, 2020 | ||
| Land |
$
|
|
| Land Improvements |
$
|
|
| Buildings |
$
|
|
| Equipment |
$
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
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.