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Required: Prepare any potential adjusting entries with supporting computations you would suggest that appear to be needed which are applicable for the above gathered information
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Prepare any potential adjusting entries with supporting computations you would suggest that appear to be needed which are applicable for the above gathered information for 12.31.19
www Fixed Assets 12.31.19 Balance Balance Assets 12.31.18 Additions Retirements 12.31.19 Land Buildings Machinery & Equipment $225,000 1,200,000 60,000 200,000 285,000 1,400,000 3,850,000 600,000 280,000 4,170,000 Total $5.275,000 $860,000 $280,000 $5,855.000 Accumulated Depreciation Building Machinery & Equipment $600,000 $51,500 $651,500 1,732,500 392,200 2,124,700 Total $2.332.500 $443.700 $2.776,200 Additional information as part of your audit: 1. All assets are depreciated on the straight-line basis with no salvage value taken into consideration based on the following estimated useful lives: buildings 25 years, all others 10 years. Policy is to take one-half year depreciation on all asset acquisitions and disposals during the year. 2. On 6.1.19, the company entered a 10-year lease cor $60,000 payable in advance every 4.1. The lease is cancelable by either party and there is no option to renew the lease or buy the equipment at lease term end, The estimated useful life is 10 years and the equipment was recorded for $600,000, the present value at the date of lease with $30,000 applicable to this machine being charged as current year depreciation expense. act for a die casting machine with annual rentals of www Fixed Assets 12.31.19 Balance Balance Assets 12.31.18 Additions Retirements 12.31.19 Land Buildings Machinery & Equipment $225,000 1,200,000 60,000 200,000 285,000 1,400,000 3,850,000 600,000 280,000 4,170,000 Total $5.275,000 $860,000 $280,000 $5,855.000 Accumulated Depreciation Building Machinery & Equipment $600,000 $51,500 $651,500 1,732,500 392,200 2,124,700 Total $2.332.500 $443.700 $2.776,200 Additional information as part of your audit: 1. All assets are depreciated on the straight-line basis with no salvage value taken into consideration based on the following estimated useful lives: buildings 25 years, all others 10 years. Policy is to take one-half year depreciation on all asset acquisitions and disposals during the year. 2. On 6.1.19, the company entered a 10-year lease cor $60,000 payable in advance every 4.1. The lease is cancelable by either party and there is no option to renew the lease or buy the equipment at lease term end, The estimated useful life is 10 years and the equipment was recorded for $600,000, the present value at the date of lease with $30,000 applicable to this machine being charged as current year depreciation expense. act for a die casting machine with annual rentals of www Fixed Assets 12.31.19 Balance Balance Assets 12.31.18 Additions Retirements 12.31.19 Land Buildings Machinery & Equipment $225,000 1,200,000 60,000 200,000 285,000 1,400,000 3,850,000 600,000 280,000 4,170,000 Total $5.275,000 $860,000 $280,000 $5,855.000 Accumulated Depreciation Building Machinery & Equipment $600,000 $51,500 $651,500 1,732,500 392,200 2,124,700 Total $2.332.500 $443.700 $2.776,200 Additional information as part of your audit: 1. All assets are depreciated on the straight-line basis with no salvage value taken into consideration based on the following estimated useful lives: buildings 25 years, all others 10 years. Policy is to take one-half year depreciation on all asset acquisitions and disposals during the year. 2. On 6.1.19, the company entered a 10-year lease cor $60,000 payable in advance every 4.1. The lease is cancelable by either party and there is no option to renew the lease or buy the equipment at lease term end, The estimated useful life is 10 years and the equipment was recorded for $600,000, the present value at the date of lease with $30,000 applicable to this machine being charged as current year depreciation expense. act for a die casting machine with annual rentals of
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