Question
At December 31, 2016, certain accounts included in the property, plant, and equipment section of Kingbird Companys balance sheet had the following balances. Land $238,000
At December 31, 2016, certain accounts included in the property, plant, and equipment section of Kingbird Companys balance sheet had the following balances. Land $238,000 Buildings 904,400 Leasehold improvements 667,600 Equipment 876,500 During 2017, the following transactions occurred. 1. Land site number 621 was acquired for $859,800. In addition, to acquire the land Kingbird paid a $59,000 commission to a real estate agent. Costs of $35,600 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $15,600. 2. A second tract of land (site number 622) with a building was acquired for $423,000. The closing statement indicated that the land value was $302,600 and the building value was $120,400. Shortly after acquisition, the building was demolished at a cost of $40,900. A new building was constructed for $332,900 plus the following costs. Excavation fees $37,900 Architectural design fees 11,000 Building permit fee 2,600 Imputed interest on funds used during construction (stock financing) 8,500 The building was completed and occupied on September 30, 2017. 3. A third tract of land (site number 623) was acquired for $654,700 and was put on the market for resale. 4. During December 2017, costs of $89,200 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 $87,300, freight costs were $3,200, installation costs were $2,500, and royalty payments for 2017 were $17,700.
(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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