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Accounting Question HELP! At December 31, 2019, Reagan Company's balance sheet had these property, plant, and equipment balances. Land $230,000 Buildings 890,000 Land improvements 660,000
Accounting Question HELP!
At December 31, 2019, Reagan Company's balance sheet had these property, plant, and equipment balances. Land $230,000 Buildings 890,000 Land improvements 660,000 Equipment 875,000 During 2020, the following transactions occurred. 1. Reagan acquired land for $850,000. $51,000 was paid to a real estate agent, and $35,000 was paid to a building materials company to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $13,000. 2. Reagan acquired property with land and building for $420,000. The closing statement indicated the land value to be $300,000 and the building value to be $120,000. Immediately after acquisition, the building was demolished at a cost of $41,000. A new building was constructed in its place for the following costs: Construction fees $330,000 Excavation fees $38,000 Architectural design fees 11,000 Building permit fee 2,500 3. A third tract of land was acquired for $650,000 as an investment property. 4. Driveways and ramps totaling $89,000 were augmented to the land acquired. 5. New machines were purchased with an invoice price of $87,000, freight costs of $3,300, and installation costs of $2,400. Instructions: Prepare journal entries to record the above transactions. Unless otherwise stated, all expenditures are made with cash. Account Debit Credit 1. 2. 2. 3. 4. 5. Instructions: Calculate the balances at December 31, 2020 in each of the following PPE accounts. Land Buildings Land Improvements Equipment
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