On may 1 2013 expenditures of 47000 were made to repave

Reference no: EM13481999

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2012:

	Plant Asset		Accumulated Depreciation
Land	$	335,000	$	0
Land improvements		175,500		42,000
Building		1,470,000		335,000
Machinery and equipment		1,128,000		390,000
Automobiles		147,000		110,500

	Transactions during 2013 were as follows:
a.	On January 2, 2013, machinery and equipment were purchased at a total invoice cost of $245,000, which included a $5,200 charge for freight. Installation costs of $24,000 were incurred.
b.	On March 31, 2013, a machine purchased for $55,000 in 2009 was sold for $35,000. Depreciation recorded through the date of sale totaled $23,375.
c.	On May 1, 2013, expenditures of $47,000 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, 2013, 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 $21,500. Shortly after acquisition, the building was razed at a cost of $32,000 in anticipation of new building construction in 2014.
e.	On December 31, 2013, Pell purchased a new automobile for $14,500 cash and trade-in of an old automobile purchased for $16,500 in 2009. Depreciation on the old automobile recorded through December 31, 2013, totaled $12,375. The fair value of the old automobile was $3,600.

Required:

For each asset classification, prepare a schedule showing depreciation expense for the year ended December 31, 2013, using the following depreciation methods 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 and no residual values are used. (Do not round intermediate calculations.)

PELL CORPORATION

DEPRECIATION EXPENSE

For the Year Ended December 31, 2013

Land Improvements: XXXX

Building: XXXXXX

Machinery and Equipment: XXXX

Automobiles: XXXX

Total Depreciation Expense for 2013: XXXXX

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2012:

	Plant Asset		Accumulated Depreciation
Land	$	335,000	$	0
Land improvements		175,500		42,000
Building		1,470,000		335,000
Machinery and equipment		1,128,000		390,000
Automobiles		147,000		110,500

	Transactions during 2013 were as follows:
a.	On January 2, 2013, machinery and equipment were purchased at a total invoice cost of $245,000, which included a $5,200 charge for freight. Installation costs of $24,000 were incurred.
b.	On March 31, 2013, a machine purchased for $55,000 in 2009 was sold for $35,000. Depreciation recorded through the date of sale totaled $23,375.
c.	On May 1, 2013, expenditures of $47,000 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, 2013, 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 $21,500. Shortly after acquisition, the building was razed at a cost of $32,000 in anticipation of new building construction in 2014.
e.	On December 31, 2013, Pell purchased a new automobile for $14,500 cash and trade-in of an old automobile purchased for $16,500 in 2009. Depreciation on the old automobile recorded through December 31, 2013, totaled $12,375. The fair value of the old automobile was $3,600.

Required:

For each asset classification, prepare a schedule showing depreciation expense for the year ended December 31, 2013, using the following depreciation methods 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 and no residual values are used. (Do not round intermediate calculations.)

PELL CORPORATION

DEPRECIATION EXPENSE

For the Year Ended December 31, 2013

Land Improvements: XXXX

Building: XXXXXX

Machinery and Equipment: XXXX

Automobiles: XXXX

Total Depreciation Expense for 2013: XXXXX

Reference no: EM13481999

Questions Cloud

Crockett company uses a job costing system and had a : crockett company uses a job costing system and had a beginning work in process inventory balance of 33200. during the

West coast marine amp rv is considering replacing its wired : west coast marine amp rv is considering replacing its wired pendant controllers on its heavy-duty cranes with new

Sonnheim manufacturing uses job costing in may material : sonnheim manufacturing uses job costing. in may material requisition were 51000 and raw material purchases were 58900.

A corporation applies manufacturing overhead on the basis : a corporation applies manufacturing overhead on the basis of direct labor-hours. at the beginning of the most recent

On may 1 2013 expenditures of 47000 were made to repave : the plant asset and accumulated depreciation accounts of pell corporation had the following balances at december 31

Travis fortney and architect opened an office on april 1 : travis fortney and architect opened an office on april 1 2010. during the month he completed the following transactions

Expenses for the year were 392000 ending equity is 751000 : beginning assets were 700000 beginning equity was 225000 revenue for the year was 523000 common stock sold during the

Depreciation was computed on the sum-of-the-years-digits : on january 1 2012 graham company purchased a new machine for 2800000. the new machine has an estimated useful life of

An error in the general journal where a 4950 increase in : a trial balance taken at year-end showed total credits exceeding total debits by 4950. this discrepancy could have been

User Account

All Pages