acc201wa6excel - Student Name: Tom Baker Class: ACC201...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Tom Baker Class: ACC201 Problem 10-03 Requirement 1: PELL CORPORATION Analysis of Change in Plant Assets For the Year Ended December 31, 2011 Balance Balance 12/31/2010 Increase Decrease 12/31/2011 Land $350,000 $438,000 $788,000 Land improvements 180,000 180,000 Building 1,500,000 1,500,000 Machinery and equipment 1,158,000 287,000 58,000 1,387,000 Automobiles 150,000 19,000 18,000 151,000 Totals $3,338,000 $744,000 $76,000 $4,006,000 Correct! Correct! Correct! Correct! Explanations of Amounts: Cost of land acquired 11/1/2011: Pell stock exchanged $380,000 Legal fees and title insurance 23,000 Razing existing building 35,000 $438,000 Correct! Cost of machinery and equipment purchased 1/2/2011: Invoice cost $260,000 Installation cost 27,000 $287,000 Correct! Cost recorded for new automobile 12/31/2011: Fair value of trade-in $3,750 Cash paid 15,250 $19,000 Correct! Requirement 2: PELL CORPORATION Gain or Loss From Plant Asset Disposals For the Year Ended December 31, 2011 Sale of machine on 3/31/2011: Selling price $36,500 Less: Book value on machine (33,350) Gain on sale of machine $3,150 Correct! Trade-in of automobile on 12/31/2011: Book value of trade-in $4,500 Less: Fair value of trade-in (3,750) Loss on trade-in $750 Correct! Hint:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

acc201wa6excel - Student Name: Tom Baker Class: ACC201...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online