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The plant asset and accumulated depreciation accou...




The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2010: Plant Asset Accumulated Depreciation Land $ 350,000 $ ? Land improvements 180,000 45,000 Building 1,500,000 350,000 Machinery and equipment 1,158,000 405,000 Automobiles 150,000 112,000 -------------------------------------------------------------------------------- Transactions during 2011 were as follows: a. On January 2, 2011, machinery and equipment were purchased at a total invoice cost of $260,000, which included a $5,500 charge for freight. Installation costs of $27,000 were incurred. b. On March 31, 2011, a machine purchased for $58,000 in 2007 was sold for $36,500. Depreciation recorded through the date of sale totaled $24,650. c. On May 1, 2011, expenditures of $50,000 were made to repave parking lots at Pell?s plant location. The work was necessitated by damage caused by severe winter weather. d. On November 1, 2011, 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 $38 per share. Pell paid legal fees and title insurance totaling $23,000. Shortly after acquisition, the building was razed at a cost of $35,000 in anticipation of new building construction in 2012. e. On December 31, 2011, Pell purchased a new automobile for $15,250 cash and trade-in of an old automobile purchased for $18,000 in 2007. Depreciation on the old automobile recorded through December 31, 2011, totaled $13,500. The fair value of the old automobile was $3,750. Required: (1) Prepare a schedule analyzing the changes in each of the plant assets during 2011, with detailed supporting computations. (2) Prepare a schedule showing the gain or loss from each asset disposal that would be recognized in Pell?s income statement for the year ended December 31, 2011.,Pls try to do earlier than 9th because the deadline is tomorrow which is July 8th. Thanks Sana,Thank you


Paper#7887 | Written in 18-Jul-2015

Price : $25