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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

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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Looking for answers asap. Please inlcude the calculations for my reference. Thanks!

The type of depreciation for all the clauses is straight-line method.

Analyze and review the following items and determine the appropriate journal entry. 

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: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.
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
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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