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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 Plant Asset $ 420,000 215,000 1,850,000 1,172,000 Accumulated Depreciation $ - 52,000 357,000 Equipment Automobiles 185,000 412,000 119,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $295,000, which included a $6,200 charge for freight. Installation costs of $34,000 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 $26,000. The fair value of the building on the day of the donation was $18,000. c. On May 1, 2024, expenditures of $57,000 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 $35 per share. Pell paid legal fees and title insurance totaling $30,000. Shortly after acquisition, the building was razed at a cost of $42,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $16,650 cash and an old automobile purchased for $21,500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14,200. The fair value of the old automobile was $4,450. 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 $ 420,000 Land improvements 215,000 1,850,000 Building Decrease Balance 12/31/2024

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Land Land improvements Building Plant Asset $ 420,000 215,000 1,850,000 1,172,000 Accumulated Depreciation $ - 52,000 357,000 Equipment Automobiles 185,000 412,000 119,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $295,000, which included a $6,200 charge for freight. Installation costs of $34,000 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 $26,000. The fair value of the building on the day of the donation was $18,000. c. On May 1, 2024, expenditures of $57,000 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 $35 per share. Pell paid legal fees and title insurance totaling $30,000. Shortly after acquisition, the building was razed at a cost of $42,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $16,650 cash and an old automobile purchased for $21,500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14,200. The fair value of the old automobile was $4,450. 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 $ 420,000 Land improvements 215,000 1,850,000 Building Decrease Balance 12/31/2024

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Plant Asset $ 420,000 215,000 1,850,000 1,172,000 Accumulated Depreciation $ - 52,000 357,000 Equipment Automobiles 185,000 412,000 119,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $295,000, which included a $6,200 charge for freight. Installation costs of $34,000 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 $26,000. The fair value of the building on the day of the donation was $18,000. c. On May 1, 2024, expenditures of $57,000 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 $35 per share. Pell paid legal fees and title insurance totaling $30,000. Shortly after acquisition, the building was razed at a cost of $42,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $16,650 cash and an old automobile purchased for $21,500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14,200. The fair value of the old automobile was $4,450. 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 $ 420,000 Land improvements 215,000 1,850,000 Building Decrease Balance 12/31/2024
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 $ 420,000 215,000 1,850,000 1,172,000 Accumulated Depreciation $ - 52,000 357,000 Equipment Automobiles 185,000 412,000 119,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $295,000, which included a $6,200 charge for freight. Installation costs of $34,000 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 $26,000. The fair value of the building on the day of the donation was $18,000. c. On May 1, 2024, expenditures of $57,000 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 $35 per share. Pell paid legal fees and title insurance totaling $30,000. Shortly after acquisition, the building was razed at a cost of $42,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $16,650 cash and an old automobile purchased for $21,500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14,200. The fair value of the old automobile was $4,450. 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 $ 420,000 Land improvements 215,000 1,850,000 Building Decrease Balance 12/31/2024
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