At December 31, 2019, certain accounts included in the property, plant, and equipment section of Concord Corporation’s statement of financial position had the following balances: Land $309,520 Buildings—Structure 882,660 Leasehold Improvements 704,970 Equipment 844,620 During 2020, the following transactions occurred: 1. Land site No. 621 was acquired for $799,820 plus a fee of $6,880 to the real estate agent for finding the property. Costs of $33,270 were incurred to clear the land. In clearing the land, topsoil and gravel were recovered and sold for $10,720. 2. Land site No. 622, which had a building on it, was acquired for $559,550. The closing statement indicated that the land’s assessed tax value was $308,860 and the building’s value was $101,820. Shortly after acquisition, the building was demolished at a cost of $27,990. A new building was constructed for $339,860 plus the following costs: Excavation fees $37,550 Architectural design fees 14,590 Building permit fee 2,080 “Green roof” design and construction (to be retrofitted every seven years) 35,830 Imputed interest on funds used during construction (share financing) 8,140 The building, completed and occupied on September 30, 2020, is expected to have a 30-year useful life. 3. A third tract of land (No. 623) was acquired for $264,510 and was put on the market for resale. 4. During December 2020, costs of $88,590 were incurred to improve leased office space. The related lease will terminate on December 31, 2022, and is not expected to be renewed. 5. Equipment was purchased under a royalty agreement. The terms of the agreement require Concord Corporation to pay royalties based on the units of production for the equipment. The equipment’s invoice price was $111,000, freight costs were $2,830, installation costs were $3,210, and royalty payments for 2020 were $14,820. (a) Calculate the balance at December 31, 2020 in each of the following accounts: Land, Leasehold Improvements, Buildings—Structure, Buildings—Roof, and Equipment. Ignore the related Accumulated Depreciation accounts. Land $ Leasehold Improvements $ Buildings—Structure $ Buildings—Roof $ Equipment $

At December 31, 2019, certain accounts included in the property, plant, and equipment section of Concord Corporation’s statement of financial position had the following balances: Land $309,520 Buildings—Structure 882,660 Leasehold Improvements 704,970 Equipment 844,620 During 2020, the following transactions occurred: 1. Land site No. 621 was acquired for $799,820 plus a fee of $6,880 to the real estate agent for finding the property. Costs of $33,270 were incurred to clear the land. In clearing the land, topsoil and gravel were recovered and sold for $10,720. 2. Land site No. 622, which had a building on it, was acquired for $559,550. The closing statement indicated that the land’s assessed tax value was $308,860 and the building’s value was $101,820. Shortly after acquisition, the building was demolished at a cost of $27,990. A new building was constructed for $339,860 plus the following costs: Excavation fees $37,550 Architectural design fees 14,590 Building permit fee 2,080 “Green roof” design and construction (to be retrofitted every seven years) 35,830 Imputed interest on funds used during construction (share financing) 8,140 The building, completed and occupied on September 30, 2020, is expected to have a 30-year useful life. 3. A third tract of land (No. 623) was acquired for $264,510 and was put on the market for resale. 4. During December 2020, costs of $88,590 were incurred to improve leased office space. The related lease will terminate on December 31, 2022, and is not expected to be renewed. 5. Equipment was purchased under a royalty agreement. The terms of the agreement require Concord Corporation to pay royalties based on the units of production for the equipment. The equipment’s invoice price was $111,000, freight costs were $2,830, installation costs were $3,210, and royalty payments for 2020 were $14,820. (a) Calculate the balance at December 31, 2020 in each of the following accounts: Land, Leasehold Improvements, Buildings—Structure, Buildings—Roof, and Equipment. Ignore the related Accumulated Depreciation accounts. Land $ Leasehold Improvements $ Buildings—Structure $ Buildings—Roof $ Equipment $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 9P: During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the...

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At December 31, 2019, certain accounts included in the property, plant, and equipment section of Concord Corporation’s statement of financial position had the following balances:

Land		$309,520
Buildings—Structure		882,660
Leasehold Improvements		704,970
Equipment		844,620

During 2020, the following transactions occurred:

Land site No. 621 was acquired for $799,820 plus a fee of $6,880 to the real estate agent for finding the property. Costs of $33,270 were incurred to clear the land. In clearing the land, topsoil and gravel were recovered and sold for $10,720.

Land site No. 622, which had a building on it, was acquired for $559,550. The closing statement indicated that the land’s assessed tax value was $308,860 and the building’s value was $101,820. Shortly after acquisition, the building was demolished at a cost of $27,990. A new building was constructed for $339,860 plus the following costs:

Excavation fees		$37,550
Architectural design fees		14,590
Building permit fee		2,080
“Green roof” design and construction (to be retrofitted every seven years)		35,830
Imputed interest on funds used during construction (share financing)		8,140

The building, completed and occupied on September 30, 2020, is expected to have a 30-year useful life.

A third tract of land (No. 623) was acquired for $264,510 and was put on the market for resale.

During December 2020, costs of $88,590 were incurred to improve leased office space. The related lease will terminate on December 31, 2022, and is not expected to be renewed.

Equipment was purchased under a royalty agreement. The terms of the agreement require Concord Corporation to pay royalties based on the units of production for the equipment. The equipment’s invoice price was $111,000, freight costs were $2,830, installation costs were $3,210, and royalty payments for 2020 were $14,820.

(a)

Calculate the balance at December 31, 2020 in each of the following accounts: Land, Leasehold Improvements, Buildings—Structure, Buildings—Roof, and Equipment. Ignore the related Accumulated Depreciation accounts.

Land		$
Leasehold Improvements		$
Buildings—Structure		$
Buildings—Roof		$
Equipment		$

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