Student Name:
Class:
Requirement 1:
Balance Balance
12/31/2015 Increase Decrease 12/31/2016
350,000$ 438,000$ 788,000$
180,000 180,000
Invoice cost
Installation cost
Cost recorded for new automobile 12/31/2016:
Fair value of trade-in
Cash paid
Cost of machinery and equipment purchased 1/2/2016:
Razing existing building
380,000$
23,000
Less: Fair value of trade-in
Less: Book value on machine
Trade-in of automobile on 12/31/2016:
Book value of trade-in
36,500$
Selling price
Sale of machine on 3/31/2016:
Requirement 2:
Explanations of Amounts:
Cost of land acquired 11/1/2016:
Pell stock exchanged
Legal fees and title insurance
Problem 10-03
McGraw-Hill/Irwin
Instructor
For the Year Ended December 31, 2016
Gain or Loss From Plant Asset Disposals
PELL CORPORATION
Hint: “Increases” come from the “Explanations of Amounts” below the table. “Decreases” come from assets
that have been sold or traded in.
For the Year Ended December 31, 2016
Analysis of Change in Plant Assets
PELL CORPORATION
Land
Land improvements
Machinery and equipment
Plant Accumulated
Assets Depreciation
350,000$ $ –
180,000 45,000
Balances at December 31, 2015:
Given Data P10-03:
Land
Land improvements
Plant asset and accumulated depreciation accounts
Transactions during 2016:
Legal fees and title insurance
Cost to raze building
New automobile cost
Old automobile cost
Old automobile depreciation
Old automobile fair value
Machine purchase, 2012
Machine selling price, 2016
Depreciation through date of sale
Repaving cost
Common shares exchanged for land
Market price per share
Machinery and equipment
Machinery and equipment purchase
Freight charge (included in purchase price above)
Installation costs
Student Name:
Class:
1,000,000$ 12/ 12 1,000,000$
August 31, 2017
Accumulated expenditures
Average accumulated expenditures
Interest capitalized
Weighted average rate of all other debt:
January 31, 2017
April 30, 2017
3,205,000$ 9/ 93,205,000$
2017
Total interest incurred
Less: Interest capitalized
2016
Total interest incurred
Less: Interest capitalized
4,960,000$
Accumulated expenditures 9/30/14,
before interest capitalization
Requirement 2:
Expenditures for 2017:
2017
January 1, 2017
2016
Instructor
Calculations
MASON MANUFACTURING COMPANY
Problem 10-09
McGraw-Hill/Irwin
Requirement 1:
Expenditures for 2016:
January 1, 2016
Accumulated expenditures
March 1, 2016
June 30, 2016
October 1, 2016
Long-term note
Long-term note interest rate
Long-term note
Long-term note interest rate
1,000,000$
600,000
3,000,000$
10%
Construction loan amount
Construction loan interest rate
MASON MANUFACTURING COMPANY
Given Data P10-09:
January 1, 2016
March 1, 2016
October 1, 2016
January 31, 2017
April 30, 2017
August 31, 2017
June 30, 2016
Student Name:
Class:
1,000,000$ 12/ 12 1,000,000$
Correct!
3,000,000$ 10% 300,000$
August 31, 2017
April 30, 2017
January 31, 2017
Expenditures for 2017:
3,160,925$ 9/ 93,160,925$
before interest capitalization
3,000,000$ 10% 300,000$
2017
Total interest incurred
Less: Interest capitalized
Total interest incurred
Less: Interest capitalized
4,000,000 6% 240,000
Accumulated expenditures 9/30/2017,
Requirement 3:
Requirement 2:
January 1, 2017
2017
Weighted average of all debt:
2016
Instructor
Problem 10-10
McGraw-Hill/Irwin
Calculations
MASON MANUFACTURING COMPANY
2016
Requirement 1:
January 1, 2016
Expenditures for 2016:
October 1, 2016
June 30, 2016
March 1, 2016
Accumulated expenditures
Long-term note
Long-term note interest rate
Long-term note
Long-term note interest rate
1,000,000$
600,000
3,000,000$
10%
Construction loan amount
Construction loan interest rate
Given Data P10-10:
MASON MANUFACTURING COMPANY
January 1, 2016
March 1, 2016
October 1, 2016
January 31, 2017
April 30, 2017
August 31, 2017
June 30, 2016