Transactions during 2021 were as follows:a. On January 2, 2021, equipment were purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight.Installation costs of $40,000 were incurred.b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased itthree years ago for $32,000. The fair value of the building on the day of the donation was $21,000.c. On May 1, 2021, expenditures of $63,000 were made to repave parking lots at Pell's plant location. The work was necessitated bydamage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated.d. On November 1, 2021, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's common stockthat had a market price of $35 per share. Pell paid legal fees and title insurance totaling $36,000. Shortly after acquisition, thebuilding was razed at a cost of $48,000 in anticipation of new building construction in 2022.e. On December 31, 2021, Pell purchased a small storage building by giving $16,550 cash and an old automobile purchased for$24,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $14,800. The fair value of theold automobile was $5,050.Required:Prepare a schedule analyzing the changes in each of the plant assets during 2021.LandLand improvementsBuildingEquipmentAutomobilesTotalsPELL CORPORATIONAnalysis of Changes in Plant AssetsFor the Year Ended December 31, 2021Balance12/31/2020$ 480,000245,0002,150,0001,184,000215,000$ 4,274,000 $Increase0 $Decrease0 $Balance12/31/20210 Problem 10-3 (Algo) Acquisition costs [LO10-1, 10-4, 10-6]The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020:AccumulatedDepreciation$LandLand improvementsBuildingEquipmentAutomobilesPlant Asset$ 480,000245,0002,150,0001,184,000215,000Transactions during 2021 were as follows:a. On January 2, 2021, equipment were purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight.Installation costs of $40,000 were incurred.b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased itthree years ago for $32,000. The fair value of the building on the day of the donation was $21,000.c. On May 1, 2021, expenditures of $63,000 were made to repave parking lots at Pell's plant location. The work was necessitated bydamage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated.d. On November 1, 2021, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's common stockthat had a market price of $35 per share. Pell paid legal fees and title insurance totaling $36,000. Shortly after acquisition, thebuilding was razed at a cost of $48,000 in anticipation of new building construction in 2022.e. On December 31, 2021, Pell purchased a small storage building by giving $16,550 cash and an old automobile purchased for$24,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $14,800. The fair value of theold automobile was $5,050.LandLand improvementsBuildingRequired:Prepare a schedule analyzing the changes in each of the plant assets during 2021.PELL CORPORATIONAnalysis of Changes in Plant AssetsFor the Year Ended December 31, 2021Balance12/31/2020$58,000363,000418,000125,000480,000245,0002,150,000IncreaseDecreaseBalance12/31/2021

The entire cost that a business record for property or equipment on its books, less any discounts,…

Transactions during 2021 were as follows: a. On January 2, 2021, equipment were purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight. Installation costs of $40,000 were incurred. b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2021, expenditures of $63,000 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, 2021, 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 $36,000. Shortly after acquisition, the building was razed at a cost of $48,000 in anticipation of new building construction in 2022. e. On December 31, 2021, Pell purchased a small storage building by giving $16,550 cash and an old automobile purchased for $24,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $14,800. The fair value of the old automobile was $5,050. Required: Prepare a schedule analyzing the changes in each of the plant assets during 2021. Land Land improvements Building Equipment Automobiles Totals PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2021 Balance 12/31/2020 $ 480,000 245,000 2,150,000 1,184,000 215,000 $ 4,274,000 $ Increase 0 $ Decrease Balance 12/31/2021 0 $ 0

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q