On December 31, 2018 Change Co. showed the following account balances in his general ledger: Land $330,000 Building and plant facilities 990,000 Machinery and equipment 975,000 During 2019, the following transactions occurred. 1. Land site A was acquired for $650,000 plus legal fees on closing of $40,000. 2. Land site B, with a building, was acquired for $720,000. The closing statement indicated that the land value was $500,000 and the building value was $300,000. Shortly after acquisition, the building was removed and sold to a third party for $50,000. A new building was constructed for $460,000, plus the following costs: Architectural design fees $45,000 Excavation fees 58,000 Imputed interest on company funds 25,000 The imputed interest represents the amount of interest that the company would have paid if it had borrowed money to construct the building. The building was completed and occupied at the end of November 2019. 3. A group of machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machine was $147,000, freight costs were $4,000, and royalty payments for 2019 were $12,000. Required a. Prepare a schedule to determine the balance in each of the following balance sheet accounts at December 31, 2019:i) Land ii) Building and plant facilities iii) Machinery and equipment Disregard the related accumulate depreciation amounts

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Asked Nov 10, 2019
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On December 31, 2018 Change Co. showed the following account balances in his general ledger: Land $330,000 Building and plant facilities 990,000 Machinery and equipment 975,000

During 2019, the following transactions occurred. 1. Land site A was acquired for $650,000 plus legal fees on closing of $40,000.
2. Land site B, with a building, was acquired for $720,000. The closing statement indicated that the land value was $500,000 and the building value was $300,000. Shortly after acquisition, the building was removed and sold to a third party for $50,000. A new building was constructed for $460,000, plus the following costs: Architectural design fees $45,000 Excavation fees 58,000 Imputed interest on company funds 25,000

The imputed interest represents the amount of interest that the company would have paid if it had borrowed money to construct the building. The building was completed and occupied at the end of November 2019.
3. A group of machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machine was $147,000, freight costs were $4,000, and royalty payments for 2019 were $12,000.
Required a. Prepare a schedule to determine the balance in each of the following balance sheet accounts at December 31, 2019:

i) Land 
ii) Building and plant facilities 
iii) Machinery and equipment 

Disregard the related accumulate depreciation amounts

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Monetary Assets and non-monetary assets: Monetary assets are the assets whose value can be convertible easily into fixed amount of cash. Example: Cash, accounts receivable, investments.

The asset which does not have fixed or stated cash value exchange is referred as non-monetary assets. However, this cash value depends on the economic conditio...

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