at december 31 2010 davis company s noncurrent operating asset 251928

At December 31, 2010, Davis Company’s noncurrent operating asset accounts had the following balances:

Category

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 280,000

Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,150,000

Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . 924,000

Automobiles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113,000

Leasehold improvements. . . . . . . . . . . . . . . . . . . . . . . . 277,000

Land improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0

Transactions for 2011 included the following:

Jan. 6 A plant facility consisting of land and a building was acquired from Matthews Corp. in exchange for 10,000 shares of Davis’ common stock. On this date, Davis’ stock had a market price of $73 a share. Current assessed values of land and building for property tax purposes are $195,000 and $405,000, respectively.

Mar. 25 New parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $141,000.

July 1 Machinery and equipment were purchased at a total invoice cost of $187,000, which included $12,000 of sales tax. Additional costs of $14,000 for delivery and $22,000 for installation were incurred.

Aug. 30 Davis purchased a new automobile for $26,400.

Nov. 4 Davis purchased for $370,000 a tract of land as a potential future building site.

Dec. 20 A machine with a cost of $22,000 and a remaining book value of $3,100 at date of disposition was scrapped without cash recovery.

Instructions:

Prepare a schedule analyzing the changes in each of the noncurrent operating asset accounts during 2011. This schedule should include columns for beginning balance, increase, decrease, and ending balance for each of the noncurrent operating asset accounts.

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