[Partially correct answer.] Your answer is partially correct. Try again. Skysong Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting
[Partially correct answer.] Your answer is partially correct. Try again.
Skysong Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting department of Skysong 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 companys records and personnel.
1. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. 2. Land A and Building A were acquired from a predecessor corporation. Skysong paid $741,500 for the land and building together. At the time of acquisition, the land had an appraised value of $92,900, and the building had an appraised value of $836,100. 3. Land B was acquired on October 2, 2016, in exchange for 2,500 newly issued shares of Skysongs common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $29 per share. During October 2016, Skysong paid $16,000 to demolish an existing building on this land so it could construct a new building. 4. Construction of Building B on the newly acquired land began on October 1, 2017. By September 30, 2018, Skysong had paid $336,100 of the estimated total construction costs of $431,300. It is estimated that the building will be completed and occupied by July 2019. 5. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $41,400 and the salvage value at $3,000. 6. Machinery As total cost of $164,600 includes installation expense of $580 and normal repairs and maintenance of $16,000. Salvage value is estimated at $5,800. Machinery A was sold on February 1, 2018. 7. On October 1, 2017, Machinery B was acquired with a down payment of $6,120 and the remaining payments to be made in 11 annual installments of $6,380 each beginning October 1, 2017. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded).
Present value of $1.00 at 8% Present value of an ordinary annuity of $1.00 at 8% 10 years 0.463 10 years 6.710 11 years 0.429 11 years 7.139 15 years 0.315 15 years 8.559
Complete the schedule below. (Round answers to 0 decimal places, e.g. 45,892.)
SKYSONG CORPORATION Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2017, and September 30, 2018 Depreciation Expense Year Ended September 30 Assets Acquisition Date Cost Salvage Depreciation Method Estimated Life in Years 2017 2018 Land A October 1, 2016 (1) $ [Entry field with correct answer] N/A N/A N/A N/A N/A Building A October 1, 2016 (2) [Entry field with correct answer] $43,200 Straight-line (3) [Entry field with correct answer] $13,280 (4) [Entry field with incorrect answer] Land B October 2, 2016 (5) [Entry field with incorrect answer] N/A N/A N/A N/A N/A Building B Under Construction $336,100 to date Straight-line 30 (6) [Entry field with incorrect answer] Donated Equipment October 2, 2016 (7) [Entry field with incorrect answer] 3,000 150% declining-balance 10 (8) [Entry field with incorrect answer] (9) [Entry field with incorrect answer] Machinery A October 2, 2016 (10) [Entry field with correct answer] 5,800 Sum-of-the-years'-digits 8 (11) [Entry field with incorrect answer] (12) [Entry field with incorrect answer] Machinery B October 1, 2017 (13) [Entry field with incorrect answer] Straight-line 20 (14) [Entry field with incorrect answer]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started