Accumulated Depreciation Accumulated Asset Acquisition Useful Depreciation Expense Depreciation Adjustments Category Number Description Date Life (Yrs) Cost to 12/31/19 2020 to 12/31/20 to 12/31/20 NBV Land 1 acre - 11th Line 05/31/19 100,000.00 09/01/18 09/01/18 401 Main Street 200,000.00 .5 acre 402 Main Street 20,000.00 320,000.00 Building 2018-01 401 Main Street 09/01/18 40 1,869,054.60 62,301.82 2018-09 410 Main Street 02/1/19 40 150,000.00 3,437.50 2019-09 406 Main Street 08/1/19 40 945,000.00 9,843.75 2,964,054.60 75,583.07 Equipment 2018-02 2013 Ford F150 Truck 02/01/18 6. 8,590.00 2,744.03 2018-03 2014 Dodge Ram Truck 03/31/18 6. 15,600.00 4,550.00 2018-04 Toro lawn mower 06/30/18 4 2,300.00 862.50 2018-05 2007 John Deere Excavator 09/01/18 10 25,000.00 3,333.33 09/01/18 | 10/01/18 | 10/01/18 03/01/19 2018-06 2009 Cat Backhoe 10 12,300.00 1,640.00 2018-07 2004 Case Tractor 10 9,800.00 1,225.00 2018-08 3 wagons 4 3,000.00 937.50 2019-10 2018 Chev Truck 6. 35,600.00 4,944.44 | 2010 Toyota Tundra 05/31/19 1,822.92 2019-11 6. 18,750.00 2019-12 2017 Kenworth 07/31/19 6 220,500.00 15,312.50 2019-13 2015 Loader 08/01/19 10 18,165.00 756.88 2019-14 1996 Grader 12/01/19 10 7,200.00 60.00 2019-15 Flat-bed Trailer 12/01/19 10 12,300.00 102.50 05/01/20 07/01/20 12/31/20 2020-16 2019 Grader 10 16,800.00 2020-17 1 wagon 1,000.00 2020-18 2012 Ford F150 6. 406,905.00 38,291.60 ТОTAL $ 3,690,959.60 $ 113,874.67
Accumulated Depreciation Accumulated Asset Acquisition Useful Depreciation Expense Depreciation Adjustments Category Number Description Date Life (Yrs) Cost to 12/31/19 2020 to 12/31/20 to 12/31/20 NBV Land 1 acre - 11th Line 05/31/19 100,000.00 09/01/18 09/01/18 401 Main Street 200,000.00 .5 acre 402 Main Street 20,000.00 320,000.00 Building 2018-01 401 Main Street 09/01/18 40 1,869,054.60 62,301.82 2018-09 410 Main Street 02/1/19 40 150,000.00 3,437.50 2019-09 406 Main Street 08/1/19 40 945,000.00 9,843.75 2,964,054.60 75,583.07 Equipment 2018-02 2013 Ford F150 Truck 02/01/18 6. 8,590.00 2,744.03 2018-03 2014 Dodge Ram Truck 03/31/18 6. 15,600.00 4,550.00 2018-04 Toro lawn mower 06/30/18 4 2,300.00 862.50 2018-05 2007 John Deere Excavator 09/01/18 10 25,000.00 3,333.33 09/01/18 | 10/01/18 | 10/01/18 03/01/19 2018-06 2009 Cat Backhoe 10 12,300.00 1,640.00 2018-07 2004 Case Tractor 10 9,800.00 1,225.00 2018-08 3 wagons 4 3,000.00 937.50 2019-10 2018 Chev Truck 6. 35,600.00 4,944.44 | 2010 Toyota Tundra 05/31/19 1,822.92 2019-11 6. 18,750.00 2019-12 2017 Kenworth 07/31/19 6 220,500.00 15,312.50 2019-13 2015 Loader 08/01/19 10 18,165.00 756.88 2019-14 1996 Grader 12/01/19 10 7,200.00 60.00 2019-15 Flat-bed Trailer 12/01/19 10 12,300.00 102.50 05/01/20 07/01/20 12/31/20 2020-16 2019 Grader 10 16,800.00 2020-17 1 wagon 1,000.00 2020-18 2012 Ford F150 6. 406,905.00 38,291.60 ТОTAL $ 3,690,959.60 $ 113,874.67
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Looking for answers asap. Please inlcude the calculations for my reference. Thanks!
The type of
Analyze and review the following items and determine the appropriate
Transcribed Image Text:f. Record Depreciation on assets
Depreciate the fixed assets according to the schedule. Depreciation is calculated on an annual
basis using the straight-line method.
For assets purchased during the year, round to the nearest month when calculating depreciation.
Note – two assets were purchased during the year. In the Excel spreadsheet, see the tab “Fixed
Asset Details" to perform any necessary calculations. Details on asset 2020-18 are provided
below.
g. Traded a vehicle
On December 31, 2020 (after recording depreciation); the company traded asset #2018-03 for a
2012 Ford F150. In addition to the trade, the company paid $2,000 cash for the new truck. The
fair value of asset # 2018-03 was $9,000. Assume that this transaction HAS commercial
substance. Once this new asset is purchased, do not depreciate it.
NOTE: This transaction has not been recorded and is NOT reflected in the Unadjusted Trial
Balance (on the Cash & Equivalents tab, the amount paid should flow thru the BMO Chequing
account).
In the Excel spreadsheet, see the tab “Fixed Asset Details" to perform any necessary
calculations; and update the schedule as needed.
h. Revalue an Asset
On December 31, 2020 (after recording depreciation); the company reviewed assets for
revaluation. The building at 410 Main Street was appraised with a new value of $146,000. The
company uses the revaluation asset adjustment method to account for revaluations.
In the Excel spreadsheet, see the tab “Fixed Asset Details" to perform any necessary
calculations; and update the schedule as needed.
Transcribed Image Text:Accumulated
Depreciation
Accumulated
Adjustments
to 12/31/20
Asset
Acquisition
Useful
Depreciation
Expense
Depreciation
Category Number
Description
Date
Life (Yrs)
Cost
to 12/31/19
2020
to 12/31/20
NBV
Land
1 acre - 11th Line
05/31/19
100,000.00
09/01/18
09/01/18
401 Main Street
200,000.00
20,000.00
.5 acre 402 Main Street
320,000.00
Building
2018-01
401 Main Street
09/01/18
40
1,869,054.60
62,301.82
02/1/19
08/1/19
2018-09
410 Main Street
40
150,000.00
3,437.50
2019-09
406 Main Street
40
945,000.00
9,843.75
2,964,054.60
75,583.07
Equipment
2018-02
2013 Ford F150 Truck
02/01/18
6
8,590.00
2,744.03
2018-03
2014 Dodge Ram Truck
03/31/18
6
15,600.00
4,550.00
2018-04
Toro lawn mower
06/30/18
4
2,300.00
862.50
2018-05
2007 John Deere Excavator
09/01/18
10
25,000.00
3,333.33
2018-06
2009 Cat Backhoe
09/01/18
10
12,300.00
1,640.00
2018-07
2004 Case Tractor
10/01/18
10
9,800.00
1,225.00
2018-08
3 wagons
10/01/18
4
3,000.00
937.50
03/01/19
05/31/19
2019-10
2018 Chev Truck
6.
35,600.00
4,944.44
1,822.92
15,312.50
2019-11
2010 Toyota Tundra
18,750.00
2019-12
2017 Kenworth
07/31/19
6
220,500.00
2019-13
2015 Loader
08/01/19
10
18,165.00
756.88
2019-14
1996 Grader
12/01/19
7,200.00
12,300.00
10
60.00
12/01/19
05/01/20
2019-15
Flat-bed Trailer
10
102.50
2020-16
2019 Grader
10
16,800.00
2020-17
1 wagon
07/01/20
4
1,000.00
2020-18
2012 Ford F150
12/31/20
6
406,905.00
38,291.60
ТОTAL
$ 3,690,959.60
113,874.67
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