Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Fells Point Company's plant asset and collected depreciation accounts had balances on December 31, 2008 given below:

 

Category

Plant Asset Account

Accumulated Depreciation

Land

$175,000

$0

Building

1,500,000

328,900

Machinery & Equipment

1.125,000

317,500

Automobiles & Trucks

172,000

100,325

Leasehold improvements

216,000

108,000

Land improvements

0

0

 

Depreciation methods and estimated useful lives:

 

Buildings: 150% declining balance, 25 years

 

Machinery & Equipment: Straight-line, 10 years

 

Automobiles & trucks: 150% declining balance, 5 years, all acquired after 2005

 

Leasehold improvements: Straight-line

 

Land improvements: Straight-line

 

Depreciation is computed to the nearest month and residual values are immaterial.

 

Transactions given below happened during 2009 and other information:

 

a. On January 6, a plant facility comprising of land and building were obtained from Keller Corporation in exchange for 25,000 shares of Fells Point common stock.  On this date, Fells Point's keenly traded stock had market price of $50 per share. Present assessed values of land and building are $187,500 and $562,500, respectively.

 

b. On March 25, parking lots, streets and sidewalks at new plant were finished at total cost of $192,000. These expenditures had the estimated useful life of 12 years.

 

c. Leasehold improvements were completed at December 31, 2005, and had the estimated useful life of 8 years. Lease has been renewed to December 31, 2013.

 

d. On July 1, machinery and equipment was purchased for a total invoice price of $325,000.  Additional costs of $10,000 for delivery and $50,000 for installation were incurred.

 

e. On August 30, Fells Point bought new automobile for $12,500.

 

f. On September 30, truck with cost of $24,000 and a carrying amount of $9,100 on date of sale was sold for $11,500. Depreciation Expense of $2,650 for the 9 months of 2007 hadn't yet been recorded.

 

g. On December 20, a machine with a cost of $17,000 and a carrying amount of $2,975 at the date of disposal was scrapped with cash recovery.

 

problems:

 

a. Prepare journal entries to record each of the transactions above.

 

b. Determine the carrying amount of each asset category at the end of 2009?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916894

Have any Question? 


Related Questions in Accounting Basics

Case 2b - mendel paper companymendel paper company produces

CASE 2B - MENDEL PAPER COMPANY Mendel Paper Company produces four basic paper product lines at one of its plants: computer paper, napkins, place mats, and poster board. Materials and operations vary according to the line ...

Problem 3-2 lo 2 simple equity method adjustments

Problem 3-2 (LO 2) Simple equity method adjustments, consolidated worksheet. On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common stock, other paid-in capital ...

Question 1 which of the following results in an increase in

Question 1. Which of the following results in an increase in the equity in investee income account when applying the equity method? Unrealized gain on intercompany inventory transfers for the prior year Amortizations of ...

Unconventional and growing inccrazy craig cravath is a

UNCONVENTIONAL AND GROWING, INC. "Crazy" Craig Cravath is a somewhat eccentric yet enthusiastic businessman who believes in the social responsibility of business. Incidentally, he is also interested in making enough mone ...

Accountingimagine that you are a consultant working on a

Accounting Imagine that you are a consultant working on a special project to help a company determine techniques that it can use in order to calculate the fair value of investments. From the e-activity, prepare a report ...

Assessment one - business research report proposal initial

Assessment One - Business Research Report Proposal: Initial Research Proposal The initial research proposal will consist of the following SIX (6) items: 1. Identify a business research topic 2. Define the research questi ...

In january 2013 mitzu co pays 2650000 for a tract of land

In January 2013, Mitzu Co. pays $2,650,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $823,50 ...

Vaughn company reports the following financial information

Vaughn Company reports the following financial information before adjustments.   Dr. Cr. Accounts Receivable $155,400 Allowance for Doubtful Accounts   $3,890 Sales Revenue (all on credit)   800,700 Sales Returns and All ...

Assignmentapplication implementation of the balanced

Assignment Application: Implementation of the Balanced Scorecard APA Format Implementation of the Balanced Scorecard The term "balanced scorecard" became part of the professional accounting vernacular in the early 1990s. ...

1 fair value determination of goodwill and calculating the

1) Fair value determination of goodwill and calculating the premium paid over market value in a merger: Using fair value accounting for goodwill, under FAS 141R, determine the amount of goodwill that "the acquiring compa ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen