At December 31, 2013, certain accounts included in the property, plant, and equi

Question

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 $230,880 Buildings 899,260 Leasehold improvements 663,370 Equipment 884,520

Explanation / Answer

Land Account:

Cost of Building:

Cost of Leasehold Improvements:

Cost of Equipment:

Amount($) Balance on 31Dec 2013 230,880 + Land site No. 621 851,040 + Commision on Land 51,010 + Cost to Clear the Land 35,390 - Amount Recovered from Timber 15,690 + Site No.622 120,960 + Cost of Demolishing the old Building 47,150 + Site No. 623 650,260 Total Amount of Land 1,971,000

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