Question
At December 31, 2016, certain accounts included in the property, plant, and equipment section of Windsor Companys balance sheet had the following balances. Land $239,800
At December 31, 2016, certain accounts included in the property, plant, and equipment section of Windsor Companys balance sheet had the following balances. Land $239,800 Buildings 903,500 Leasehold improvements 667,400 Equipment 883,000 During 2017, the following transactions occurred. 1. Land site number 621 was acquired for $856,400. In addition, to acquire the land Windsor paid a $52,100 commission to a real estate agent. Costs of $39,100 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $18,300. 2. A second tract of land (site number 622) with a building was acquired for $423,400. The closing statement indicated that the land value was $302,300 and the building value was $121,100. Shortly after acquisition, the building was demolished at a cost of $40,800. A new building was constructed for $332,500 plus the following costs. Excavation fees $38,400 Architectural design fees 10,900 Building permit fee 2,400 Imputed interest on funds used during construction (stock financing) 8,600 The building was completed and occupied on September 30, 2017. 3. A third tract of land (site number 623) was acquired for $644,500 and was put on the market for resale. 4. During December 2017, costs of $89,600 were incurred to improve leased office space. The related lease will terminate on December 31, 2019, and is not expected to be renewed. (Hint: Leasehold improvements should be handled in the same manner as land improvements.) 5. A group of new 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 machines was $87,600, freight costs were $3,300, installation costs were $2,400, and royalty payments for 2017 were $17,600. (a) Calculate the balance at December 31, 2017 in each of the following balance sheet accounts. Disregard the related accumulated depreciation accounts. Balance at December 31, 2017
Land $
Buildings $
Leasehold Improvements $
Equipment $
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