Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

14 The Thompson Corporation, a manutacturer of steel products, began operations on October 1, 2019 The accounting department of Thompson has started the fixed-asset and

image text in transcribed
image text in transcribed
14 The Thompson Corporation, a manutacturer of steel products, began operations on October 1, 2019 The accounting department of Thompson has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel (FV of si. PV of $1. EVA of S1, PVA of $1. FVAD of S1 and PVAD of S1) (Use appropriate factor(e) from the tables provided.) 3.25 pos book Pint a Depreciation is computed from the first of the month of acquisition to the first of the month of disposition Land A and Building A were acquired from a predecessor corporation Thompson paid $732,500 for the land and building together At the time of acquisition, the land had a fair value of $65,600 and the building had a fair value of $754,400, Land was acquired on October 2, 2019, in exchange for 2 200 newly issued shares of Thompson's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fall value of $17 per share During October 2019, Thompson paid $9.600 to demolish an existing building on this land so it could construct a new building d Construction of Building B on the newly acquired land began on October 1, 2020 By September 30, 2021, Thompson had pald $130,000 of the estimated total construction costs of $220,000 Estimated completion and occupancy are July 2022 e Certain equipment was donated to the corporation by the city An independent appraisal of the equipment when donated placed the fall value at $12.800 and the residual value at $1.200 t Equipment As total cost of $114.000 includes installation charges of $470 and normal repairs and maintenance of $10.200. Residual value is estimated at $5.900. Equipment A was sold on February 1, 2021 9. on October 1 2020, Equipment was acquired with a down payment of $3,200 and the remaining payments to be made in 10 annual instaliments of $3,200 each beginning October 1, 2021 The prevailing Interest rate was 8% Reference Required: Supply the correct amount for each answer box on the schedule (Round your intermediate calculations and final answers to the nearest whole dollar) THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Acquisition Date Assets Depreciation for Year Ended 9.30 Cost Depreciation Method Residual Estimated Life in Years 2021 N/A NA NA 40,300 NIA $ 2020 NA 13,200 NA Land A Bulong Land Dunding Donald Eiment EVA 5 10/1/2019 10/112019 10/2/2019 Under Construction 10/2/2015 10/2/2010 NA N/A 130.000 to date not appicable Straight-line not applicable Straight line 2009 Declining balance Sur of the years do 1.200 30 10 10 5.000 w SIA 14 The Thompson Corporation, a manutacturer of steel products, began operations on October 1, 2019 The accounting department of Thompson has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel (FV of si. PV of $1. EVA of S1, PVA of $1. FVAD of S1 and PVAD of S1) (Use appropriate factor(e) from the tables provided.) 3.25 pos book Pint a Depreciation is computed from the first of the month of acquisition to the first of the month of disposition Land A and Building A were acquired from a predecessor corporation Thompson paid $732,500 for the land and building together At the time of acquisition, the land had a fair value of $65,600 and the building had a fair value of $754,400, Land was acquired on October 2, 2019, in exchange for 2 200 newly issued shares of Thompson's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fall value of $17 per share During October 2019, Thompson paid $9.600 to demolish an existing building on this land so it could construct a new building d Construction of Building B on the newly acquired land began on October 1, 2020 By September 30, 2021, Thompson had pald $130,000 of the estimated total construction costs of $220,000 Estimated completion and occupancy are July 2022 e Certain equipment was donated to the corporation by the city An independent appraisal of the equipment when donated placed the fall value at $12.800 and the residual value at $1.200 t Equipment As total cost of $114.000 includes installation charges of $470 and normal repairs and maintenance of $10.200. Residual value is estimated at $5.900. Equipment A was sold on February 1, 2021 9. on October 1 2020, Equipment was acquired with a down payment of $3,200 and the remaining payments to be made in 10 annual instaliments of $3,200 each beginning October 1, 2021 The prevailing Interest rate was 8% Reference Required: Supply the correct amount for each answer box on the schedule (Round your intermediate calculations and final answers to the nearest whole dollar) THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Acquisition Date Assets Depreciation for Year Ended 9.30 Cost Depreciation Method Residual Estimated Life in Years 2021 N/A NA NA 40,300 NIA $ 2020 NA 13,200 NA Land A Bulong Land Dunding Donald Eiment EVA 5 10/1/2019 10/112019 10/2/2019 Under Construction 10/2/2015 10/2/2010 NA N/A 130.000 to date not appicable Straight-line not applicable Straight line 2009 Declining balance Sur of the years do 1.200 30 10 10 5.000 w SIA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For The Environment

Authors: Rob Gray, Jan Bebbington

2nd Edition

0761971378, 978-0761971375

More Books

Students also viewed these Accounting questions