Problem 10-1 At December 31, 2013, certain accounts included in the property, pl

Question

Problem 10-1

At December 31, 2013, certain accounts included in the property, plant, and equipment section of Reagan Company’s balance sheet had the following balances.

During 2014, the following transactions occurred.

The building was completed and occupied on September 30, 2014.

(a)

Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2014. Disregard the related accumulated depreciation accounts.

Land $232,960 Buildings 908,780 Leasehold improvements 664,710 Equipment 877,490

Explanation / Answer

Answer:

Analysis of Building Account for 2014 Balance, January 1, 2014 908780 Cost of new building constructed on land site number 622 Construction costs 332690 Excavation Fees 45040 Architectural Design Fees 12140 Building permit fee 2740 392610 Balance at 31 dec 2014 1301390 Analysis of Leasehold Account for 2014     Balance, January 1, 2014 664710 Office Space 90970 Balance at December 31, 2014 755680 Analysis of Equipment for 2014     Balance, January 1, 2014 877490 Cost of the new machines acquired: Invoice price 85310 Freight charges 3410 Installation charges 2760 91480 Balance at December 31, 2014 968970 Analysis of Land Account for 2014 Balance, January 1, 2014 232960 Land site number 621: Acquisition cost 851120 Commission to real estate agent 54430 Clearing costs 43250 Less: Amount recovered 15290 27960 Total land site number 621 933510 Land site no 622: Land value 309370 Building value 111900 Demolition value 50870 Total land site number 622 472140 Balance at December 31, 2014 1638610

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.