Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $574,290 $333,088 Machinery, equipment, and internal-use software 545,576 430,718 Other fixed assets related to leases 694,891 522,604 Accumulated depreciation and amortization (729,348) (608,747) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value Preceding year book value $4 A comparison of the book values of the current and preceding years indicates that they increased v A comparison of the total cost and accumulated depreciation reveals that Cannington purchased million of additional fixed assets, which was offset by the additional depreciation expense of $ million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase V

Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $574,290 $333,088 Machinery, equipment, and internal-use software 545,576 430,718 Other fixed assets related to leases 694,891 522,604 Accumulated depreciation and amortization (729,348) (608,747) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value Preceding year book value $4 A comparison of the book values of the current and preceding years indicates that they increased v A comparison of the total cost and accumulated depreciation reveals that Cannington purchased million of additional fixed assets, which was offset by the additional depreciation expense of $ million taken during the current year. b. Would you normally expect the book value of fixed assets to increase or decrease during the year? Increase V

Name: Book Value of Fixed AssetsCannington, Inc., designs, manufactures, an
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Description: Book Value of Fixed AssetsCannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington:Property, Plant, and Equipment (in millions):Curren

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Long Term Assets: , #13
Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) $ 344,000 212,000 During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 3,550 41,000 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $26,000 estimated residual value. The annual accounting period ends on December 31. Required: - Indicate the effects (accounts, amounts, and + for increase and – for decrease) of the following two items on the accounting equation, using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.) 1. The adjustment for depreciation made last year at the end of 2020. 2. The two expenditures…
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1 account treatment opotiom: capitalized/ depreciated or expensed
Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Company on January 1 for a cash cost of $4,000. When purchased, the patent had an estimated life of 10 years. b. A trademark was registered with the federal government for $11,000. Management estimated that the trademark could be worth as much as $260,000 because it has an indefinite life. c. Computer licensing rights were purchased this year on January 1 for $36,000. The rights are expected to have a four-year useful life to the company. Required: 1. Compute the acquisition cost of each intangible asset. 2. Compute the amortization of each intangible for the current year ended December 31. 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year.
Morey, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Morey completed the following transactions: Jan 4 Traded in equipment with accumlated depreciation of $64,000 (cost of $134,000) for similar new equipment with a cash cost of $175,000. Recieved a trade-in allowance of $72,000 on the old equipment and paid $103,000 in cash. Jan 29 Sold a building that had a cost of $650,000 and had accumulated depreciationof $140,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $220,000. Morey received $125,000 cash and a $379,625 note receivable. Oct 30 Purchased land and a building for a single price of $360,000 cash. An independent appraisal valued the land at $160,800 and the building at $241,200. Dec 31 Recorded depreciation as follows: Equipment has an expected…
Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment $ 3,350 39,000 Major overhaul of the equipment that improved efficiency $ 331,000 229,500 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $25,000 estimated residual value. The annual accounting period ends on December 31. Required: Indicate the effects (accounts, amounts, and + for increase and - for decrease) of the following two items on the accounting equation, using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.) 1. The adjustment for depreciation made last year at the end of 2020. 2. The two expenditures for…
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Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington industries: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $736,180 $426,984 Machinery, equipment, and internal-use software 699,371 552,135 Office furniture and equipment 110,427 95,703 Other fixed assets related to leases 890,778 669,924 Accumulated depreciation and amortization (934,949) (780,351) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value $ Preceding year book value $ b. Would you normally expect the book value of fixed assets to increase or decrease during the year?
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Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) $ 165,000 76,000 During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 2,150 27,000 The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $13,000 estimated residual value. The annual accounting period ends on December 31. Required: 1. Prepare the adjusting journal entry that would have been made at the end of 2020 for depreciation on the manufacturing equipment. 2. Starting at the beginning of 2021, what is the remaining estimated life? 3. Prepare the journal entries to record the two expenditures for repairs and maintenance during 2021.