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What are the answers to Required 1 (filling in the spreadsheet) and Required 2 (filling in the spreadsheet)?

What are the answers to Required 1 (filling in the spreadsheet) and Required 2 (filling in the spreadsheet)?

FINANCIAL ACCOUNTING
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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What are the answers to Required 1 (filling in the spreadsheet) and Required 2 (filling in the spreadsheet)?

At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation Category Plant Asset and Amortization Land $ 169,000 Land improvements Buildings Equipment Automobiles and trucks Leaschold improvements 1,200,000 825,000 166,000 204,000 322,900 311,500 94,325 102,000 Depreciation methods and useful lives: Buildings-150% declining balance; 25 years. Equipment-Straight line; 10 years. Automobiles and trucks 200% declining balance; 5 years, all acquired after 2017. Leaschold improvements-Straight line. Land improvements-Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2021 and other information a. On January 6, 2021, a plant facility consisting of land and building was acquired from King Corp. in exchange for 19,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $60 a share. Current assessed values of land and building for property tax purposes are $207,000 and $483,000, respectively. b. On March 25, 2021, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $156,000. These expenditures had an estimated useful life of 12 years. c. The leaschold improvements were completed on December 31, 2017, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2023, was renewable for an additional four-year term. On April 30, 2021, Cord exercised the renewal option. d. On July 1, 2021, equipment was purchased at a total invoice cost of $319,000. Additional costs of $11,000 for delivery and $44,000 for installation were incurred. c. On September 30, 2021, Cord purchased a new automobile for $11,900. f. On September 30, 2021, a truck with a cost of $23,400 and a book value of $8,000 on date of sale was sold for $10,900. Depreciation for the nine months ended September 30, 2021, was $1,800. g. On December 20, 2021, equipment with a cost of $14,000 and a book value of $2,825 at date of disposition was scrapped without cash recovery. Required: 1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2021. Do not analyze changes in accumulated depreciation and amortization. CORD COMPANY Analysis of Changes in Plant Assets For the Year Ending December 31, 2021 Balance Balance 12/31/2020 Increase Decrease 12/31/2021 Land 169,000 Land improvements Buildings 1,200,000 Equipment Automobiles and trucks 825,000 168,000 204,000 2,564,000 LAAsehold improvements 2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2021 CORD COMPANY Depreciation and Amortization Expense For the Year Ending December 31, 2021 Land Improvements Buildings Equipment Automobiles and trucks Leasehold improvements Total depreciation and amortization expense for 2021
Transcribed Image Text:At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation Category Plant Asset and Amortization Land $ 169,000 Land improvements Buildings Equipment Automobiles and trucks Leaschold improvements 1,200,000 825,000 166,000 204,000 322,900 311,500 94,325 102,000 Depreciation methods and useful lives: Buildings-150% declining balance; 25 years. Equipment-Straight line; 10 years. Automobiles and trucks 200% declining balance; 5 years, all acquired after 2017. Leaschold improvements-Straight line. Land improvements-Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2021 and other information a. On January 6, 2021, a plant facility consisting of land and building was acquired from King Corp. in exchange for 19,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $60 a share. Current assessed values of land and building for property tax purposes are $207,000 and $483,000, respectively. b. On March 25, 2021, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $156,000. These expenditures had an estimated useful life of 12 years. c. The leaschold improvements were completed on December 31, 2017, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2023, was renewable for an additional four-year term. On April 30, 2021, Cord exercised the renewal option. d. On July 1, 2021, equipment was purchased at a total invoice cost of $319,000. Additional costs of $11,000 for delivery and $44,000 for installation were incurred. c. On September 30, 2021, Cord purchased a new automobile for $11,900. f. On September 30, 2021, a truck with a cost of $23,400 and a book value of $8,000 on date of sale was sold for $10,900. Depreciation for the nine months ended September 30, 2021, was $1,800. g. On December 20, 2021, equipment with a cost of $14,000 and a book value of $2,825 at date of disposition was scrapped without cash recovery. Required: 1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2021. Do not analyze changes in accumulated depreciation and amortization. CORD COMPANY Analysis of Changes in Plant Assets For the Year Ending December 31, 2021 Balance Balance 12/31/2020 Increase Decrease 12/31/2021 Land 169,000 Land improvements Buildings 1,200,000 Equipment Automobiles and trucks 825,000 168,000 204,000 2,564,000 LAAsehold improvements 2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2021 CORD COMPANY Depreciation and Amortization Expense For the Year Ending December 31, 2021 Land Improvements Buildings Equipment Automobiles and trucks Leasehold improvements Total depreciation and amortization expense for 2021
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