FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020:
Accumulated
Depreciation
0
Land
Land improvements
Building
Equipment
Automobiles
Plant Asset
$ 395,000
193,500
1,590,000
1,248,000
159,000
Transactions during 2021 were as follows:
$
54,000
395,000
450,000
116,500
a. On January 2, 2021, equipment were purchased at a total invoice cost of $305,000, which included a $6,400 charge for freight.
Installation costs of $36,000 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 $34,000. The fair value of the building on the day of the donation was $21,400.
c. On May 1, 2021, expenditures of $59,000 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…
how How can due entries?
Intangibles: Balance Sheet Presentation and Income Statement Effects
Bringle Company has provided information on intangible assets as follows:
A patent was purchased from Lou Company for $1,845,000 on January 1, 2018. Bringle estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of $1,635,000 when Lou sold it to Bringle.
During 2019, a franchise was purchased from Rink Company for $470,000. In addition, 6% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,000,000. Bringle estimates the useful life of the franchise to be 5 years and takes a full year's amortization in the year of purchase.
Bringle incurred R&D costs in 2019 as follows:
Materials and equipment
$150,000
Personnel
130,000
Indirect costs
69,000
$349,000
Bringle estimates that these costs will be recouped by December 31, 2020.
On January 1, 2019,…
Based on the data provided, what is the debit to accumulated depreciation recorded in 2023?
*
The following items were listed at cost by Cake Company and are depreciated according to the
straight-line method:
Land
Building
Machinery & Equipment
Total
Accumulated Depreciation
Net Book Value
12/31/2022
P 2,000,000.00
10,560,000.00
5,560,000.00
P 18,120,000.00
3,200,000.00
P 14,920,000.00
12/31/2023
P 2,000,000.00
10,560,000.00
5.200.000.00
P 17,760,000.00
3,200,000.00
P 14,560,000.00
Cake depreciation expense for 2023 and 2022 were P 440,000 and P 400,000, respectively. Based
on the data provided, what is the debit to accumulated depreciation recorded in 2023?
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- Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000arrow_forwardPell Corporation’s Property, Plant, and Equipment and Accumulated Depreciation accounts had the following balances at December 31, 2018: Property, Plant, and Equipment 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 Depreciation method and useful lives: Land improvements: Straight-line; 15 years. Building: 150%-declining-balance; 20 years. Machinery and equipment: Straight-line; 10 years. Automobiles: 150%-declining-balance; 3 years. Depreciation is computed to the nearest month. No salvage values are recognized. Transactions during 2019: On January 2, 2019, 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. On March 31, 2019, a machine purchased for $58,000 on January 3, 2015, was sold for…arrow_forwardThe plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Accumulated Depreciation $ Land Land improvements Building Equipment Automobiles Plant Asset $ 380,000 195,000 1,650,000 1,164,000 165,000 Transactions during 2021 were as follows: a. On January 2, 2021, equipment were purchased at a total invoice cost of $275,000, which included a $5,800 charge for freight. Installation costs of $30,000 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 $22,000. The fair value of the building on the day of the donation was $16.000. c. On May 1, 2021, expenditures of $53,000 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…arrow_forward
- The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Plant Asset AccumulatedDepreciation Land $ 400,000 $ — Land improvements 205,000 50,000 Building 1,750,000 355,000 Equipment 1,168,000 410,000 Automobiles 175,000 117,000 Transactions during 2021 were as follows: On January 2, 2021, equipment were purchased at a total invoice cost of $285,000, which included a $6,000 charge for freight. Installation costs of $32,000 were incurred. 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 $24,000. The fair value of the building on the day of the donation was $17,000. On May 1, 2021, expenditures of $55,000 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…arrow_forwardAstro Company sold equipment on July 1, 2021 for $75,000. The equipment had cost $210,000 and had $120,000 of accumulated depreciation as of January 1, 2021. The equipment is being annually depreciated at an amount of $24,000. Required: Prepare the necessary journal entries to: A. Update the depreciation for the equipment. B. Record the sale of the equipment.arrow_forwardInformation related to plant assets, natural resources, and intangibles at the end of 2019 for Dent Company is as follows: buildings $1,100,000, accumulated depreciation—buildings $600,000, goodwill $410,000, coal mine $500,000, and accumulated depletion—coal mine $108,000.Prepare a partial balance sheet of Dent Company for these items. (List Property, Plant and Equipment in order of Coal Mine and Buildings.)arrow_forward
- Duck Pond Golf Club purchased equipment on January 1, 2018, for $48,282. Suppose Duck Pond Golf Club sold the equipment for $36,000 on December 31, 2020. Accumulated Depreciation as of December 31, 2020, was $22,284. Journalize the sale of the equipment, assuming straight-line depreciation was used. First, calculate any gain or loss on the disposal of the equipment. Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss) Course Chat Time 1 GB V 19arrow_forwardhe plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Plant Asset Accumulated Depreciation Land $510,000 - Land Improvements 260,000 61,000 Building 2,300,000 366,000 Equipment 1,190,000 421,000 Automobiles 230,000 128,000 Transactions during 2021 were as follows: On January 2, 2021, equipment were purchased at a total invoice cost of $340,000, which included a $7,100 charge for freight. Installation costs of $43,000 were incurred. 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 $35,000. The fair value of the building on the day of the donation was $22,500. On May 1, 2021, expenditures of $66,000 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…arrow_forwardAt December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Plant Asset Accumulated Depreciationand Amortization Land $ 182,000 $ — Buildings 1,850,000 335,900 Machinery and equipment 1,475,000 324,500 Automobiles and trucks 179,000 107,325 Leasehold improvements 230,000 115,000 Land improvements — — Depreciation methods and useful lives:Buildings—150% declining balance; 25 years.Machinery and equipment—Straight line; 10 years.Automobiles and trucks—150% declining balance; 5 years, all acquired after 2014.Leasehold improvements—Straight line.Land improvements—Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2018 and other information: On January 6, 2018, a plant facility consisting of land and building was acquired from King Corp. in exchange for 32,000…arrow_forward
- Swifty Industries presents you with the following information.Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.) Description DatePurchased Cost SalvageValue Lifein Years DepreciationMethod AccumulatedDepreciation to12/31/21 Depreciationfor 2022 Machine A 2/12/20 $146,800 $17,000 10 SYD $34,220 $20060 Machine B 8/15/19 81370 21,630 5 SL 29,870 11948 Machine C 7/21/18 67,200 23,500 8 DDB (A) (B) Machine D (C) 225,570 71,070 5 SYD 72,100 (D)arrow_forwardSwifty Industries presents you with the following information.Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.) Description DatePurchased Cost SalvageValue Lifein Years DepreciationMethod AccumulatedDepreciation to12/31/21 Depreciationfor 2022 Machine A 2/12/20 $146,800 $17,000 10 (a) $34,220 (b) $ Machine B 8/15/19 (c) 21,630 5 SL 29,870 (d) Machine C 7/21/18 67,200 23,500 8 DDB (e) (f) Machine D (g) 225,570 71,070 5 SYD 72,100 (h)arrow_forwardAt December 31, 2023, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Plant Asset Accumulated Depreciation and Amortization Land $ 185,000 $ — Land improvements — — Buildings 2,000,000 438,502 Equipment 1,625,000 327,500 Automobiles and trucks 182,000 110,325 Leasehold improvements 236,000 118,000 Depreciation methods and useful lives: Buildings—150% declining balance; 25 years. Equipment—Straight line; 10 years. Automobiles and trucks—200% declining balance; 5 years, all acquired after 2020. Leasehold improvements—Straight line. Land improvements—Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2024 and other information: On January 6, 2024, a plant facility consisting of land and building was acquired from King Corporation in exchange for 35,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $60 a…arrow_forward
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