Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Thompson Corporation, a manufacturer of steel products, began operations on October 1 , 2 0 2 2 The accounting department of Thompson has started

The Thompson Corporation, a manufacturer of steel products, began operations on October 1,2022 The accounting department of Thompson has started the fixed-asset and depreclation 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 obtalned the following information from the company's records and personnel:
Note: Use tables, Excel, or a financlal calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1)
a. Depreclation is computed from the first of the month of acquisition to the first of the month of disposition
b. Land A and Bulding A were acquired from a predecessor corporation. Thompson pald $772.500 for the land and bullding together. At the time of acquisition, the land had a falr value of $103,200 and the bullding had a falr value of $756,800
c. Land B was acquired on October 22022 In exchange for 2600 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 falr value of $21 per share. During October 2022. Thompson pald $10.000 to demolish an existing bullding on this land so it could construct a new bullding.
d. Construction of Bullding B on the newly acquired land began on October 1,2023. By September 30,2024, Thompson had pald $170,000 of the estimated total construction costs of $260,000. Estimated completion and occupancy are July 2025.
e. Certaln equipment was donated to the corporation by the city. An independent appralsal of the equipment when donated placed the falr value at $14,400 and the residual value at $1,600.
f. Equipment A's total cost of $118,400 includes installation charges of $510 and normal repalrs and maintenance of $11,000 Residual value is estimated at $9,000. Equipment A was sold on February 1,2024
g. On October 1,2023. Equipment B was acquired with a down payment of $3,600 and the remalning payments to be made in 10
\table[[THOMP SON CORPORATION],[Fixed Asset and Depreciation Schedule],[For Fiscal Years Ended September 30,2023, and September 30,2024],[Assets,\table[[Acquisition],[Date]],Cost,Residual,\table[[Depreciation],[Method]],\table[[Estimated],[Life in Years]],\table[[Depreciation for],[Year Ended 9/30]]],[2023-2,2024],[Land A,10/1/2022,,N/A,not applicable,N/A,N/A,N/A],[BuildingA,101?2022,,$ 40,800,,Straight-line,,S 13,600,],[Land B,10/2/2019,-,,NA A,not applicable,N/A,NIA,N/A],[Building B,Under construction,170,000 to date ,,-,Straight-line,30,-1,],[Donated Equipment,10/2/2022,,1,800,200% Dedining balance,10,,],[Equipment A,1012:2022,,8.000,Straight-line,10,,],[Equipment E,,,-,Straight-line,15,,]]
annual installments of $3,600 each beginning October 1,2024. The prevalling interest rate was 7%.
Required:
Supply the correct amount for each answer box on the schedule.
Note: Round your intermediate calculations and final answers to the nearest whole dollar.
image text in transcribed

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_2

Step: 3

blur-text-image_3

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 Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Steinbart Romney B.

9th International Edition

0470409460, 978-0470409466

More Books

Students also viewed these Accounting questions