$348,000 162,400 1,276,000 1,113,600 During 2017, the following transactions occ
ID: 2512937 • Letter: #
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$348,000 162,400 1,276,000 1,113,600 During 2017, the following transactions occurred 1. A tract of land was acquired for $174,000 as a potential future building site 2. A plant facility of land and building was acquired from closing market was carried on Mendota's books at $127,600 for land and $371,200 for the building at the exchange date are $266,800 and . Items of machinery and equipment were purchased at a total cost of $464,000. Additional costs were incurred as follows Freight and unloading Sales taxes Installation $15,080 23,200 30,160 's various plant locations. These l expendtures had an estimated useful life of 15 years 4 Expenditures totaling $110,200 were made for new parking lots, streets, and sidewalks at the corporation 5. A machine costing $92,800 on January 1, 2009, was scrapped on June 30, 2017. Double-declining-baiance deprecation has been 6. A machine was sold for $23,200 on July 1, 2017. Original cost of the machine was $51,040 on January t, i 2014, and it was depreciated on the straight-ine basis over an of 7 years and a salvage value of $2,320. (a) Cakculate the balance at December 31, 2017 in each of the following balance sheset accounts. (Hint: Disregard the related BuildingsExplanation / Answer
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Analysis of Land Account Balance at January 1 2017 300000 Plant facility acquired from Mendota Company (Working-1) 214600 Balance at December 31 2017 514600 (*Tract of land purchased for future building will be shown ad Investment in Land) Working-1 Market price of share issued 23200*37 858400 Allocation to land and building accounts in proportion to appraised values at the exchange date: Amount Weight Allocation 858400*weight Land 266800 25% 214600 Building 800400 75% 643800 Total 1067200 858400 Analysis of Land improvements Balance at January 1 2017 162400 Parking lots, streets, and sidewalks 110200 Balance at December 31 2017 272600 Analysis of Building Balance at January 1 2017 1276000 Plant facility acquired from Mendota Company (Working-1) 643800 Balance at December 31 2017 1919800 Analysis of Machinery and Equipment Balance at January 1 2017 1113600 add:Cost of new machinery and equipment acquired: -Invoice Price 464000 -Freight unloading 15080 -Sales Tax 23200 -Installation 30160 532440 Less: Disposal -Scraped on Jun30 2017 92800 -Sale of asset (Original cost) 51040 143840 Balance at December 31 2017 1502200Related Questions
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