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 $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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		$

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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