Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight. Installation costs of $40,000 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 $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2024, 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, 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 $36,000. Shortly after acquisition, the building was razed at a cost of $48,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $17,850 cash and an old automobile purchased for $24,500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, 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 2024.
Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight. Installation costs of $40,000 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 $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2024, 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, 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 $36,000. Shortly after acquisition, the building was razed at a cost of $48,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $17,850 cash and an old automobile purchased for $24,500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, 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 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023:
Plant Asset Accumulated Depreciation
$ 480,000
245,000
2,150,000
1,184,000
215,000
Land
Land improvements
Building
Equipment
Automobiles
Transactions during 2024 were as follows:
a. On January 2, 2024, equipment was purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight
Installation costs of $40,000 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 $32,000. The fair value of the building on the day of the donation was $21,000.
c. On May 1, 2024, 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, 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 $36,000. Shortly after acquisition,
the building was razed at a cost of $48,000 in anticipation of new building construction in 2025.
e. On December 31, 2024, Pell purchased a small storage building by giving $17,850 cash and an old automobile purchased for
$24,500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14,800. The fair value of the
old automobile was $5,050.
$-
58,000
363,000
418,000
125,000
Required:
Prepare a schedule analyzing the changes in each of the plant assets during 2024.
Land
Land improvements
Building
Equipment
Automobiles
Totals
PELL CORPORATION
Analysis of Changes in Plant Assets
For the Year Ended December 31, 2024
Balance
12/31/2023
Increase
$ 480,000
245,000
2,150,000
1,184,000
215,000
$ 4,274,000
$ 434,000
21,000
365,000
Decrease
$
$ 820,000 $
24,500
24,500
Balance
12/31/2024
$
$
914,000
245,000
2,171,000
1,549,000
190,500
5,069,500
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