The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Land Land improvements Building Plant Asset $ 490,000 250,000 2,200,000 1,186,000 Accumulated Depreciation $ 59,000 364,000 Equipment Automobiles 220,000 419,000 126,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $330,000, which included a $6,900 charge for freight. Installation costs of $41,000 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 $33,000. The fair value of the building on the day of the donation was $21,500. c. On May 1, 2024, expenditures of $64,000 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 $37,000. Shortly after acquisition, the building was razed at a cost of $49,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $18,050 cash and an old automobile purchased for $25,000 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14,900. The fair value of the old automobile was $5,150. Required: Prepare a schedule analyzing the changes in each of the plant assets during 2024. PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2024 Balance 12/31/2023 Increase Land $ 490,000 Land improvements 250,000 2,200,000 Building Equipment Automobiles Totals $ 69 Decrease Balance 12/31/2024 1,186,000 220,000 4,346,000 $ 0 $ 0 $ 0 13
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Land Land improvements Building Plant Asset $ 490,000 250,000 2,200,000 1,186,000 Accumulated Depreciation $ 59,000 364,000 Equipment Automobiles 220,000 419,000 126,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $330,000, which included a $6,900 charge for freight. Installation costs of $41,000 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 $33,000. The fair value of the building on the day of the donation was $21,500. c. On May 1, 2024, expenditures of $64,000 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 $37,000. Shortly after acquisition, the building was razed at a cost of $49,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $18,050 cash and an old automobile purchased for $25,000 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14,900. The fair value of the old automobile was $5,150. Required: Prepare a schedule analyzing the changes in each of the plant assets during 2024. PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2024 Balance 12/31/2023 Increase Land $ 490,000 Land improvements 250,000 2,200,000 Building Equipment Automobiles Totals $ 69 Decrease Balance 12/31/2024 1,186,000 220,000 4,346,000 $ 0 $ 0 $ 0 13
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
Plant Asset
$ 490,000
250,000
2,200,000
1,186,000
Accumulated Depreciation
$
59,000
364,000
Equipment
Automobiles
220,000
419,000
126,000
Transactions during 2024 were as follows:
a. On January 2, 2024, equipment was purchased at a total invoice cost of $330,000, which included a $6,900 charge for freight.
Installation costs of $41,000 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 $33,000. The fair value of the building on the day of the donation was $21,500.
c. On May 1, 2024, expenditures of $64,000 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 $37,000. Shortly after acquisition,
the building was razed at a cost of $49,000 in anticipation of new building construction in 2025.
e. On December 31, 2024, Pell purchased a small storage building by giving $18,050 cash and an old automobile purchased for
$25,000 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14,900. The fair value of
the old automobile was $5,150.
Required:
Prepare a schedule analyzing the changes in each of the plant assets during 2024.
PELL CORPORATION
Analysis of Changes in Plant Assets
For the Year Ended December 31, 2024
Balance
12/31/2023
Increase
Land
$
490,000
Land improvements
250,000
2,200,000
Building
Equipment
Automobiles
Totals
$
69
Decrease
Balance
12/31/2024
1,186,000
220,000
4,346,000 $
0 $
0 $
0
13
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