please answer with all work like explanation , computation, formula with steps need correct and complete answer for better understanding please answer in text no AI no handwritten no image need accurate answer need answer in text no copy from other answer show explain with reason and calculation clearly please no copy paste from other answer answer in text answer both parts At December 31, 2023, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows:Accumulated Depreciationand AmortizationCategoryLandLand improvementsBuildingsEquipmentAutomobiles and trucksLeasehold improvementsPlant Asset$ 185,0002,000,0001,625,000182,000236,000Depreciation methods and useful lives:Buildings-150% declining balance; 25 years.Equipment Straight line; 10 years.$-1-438,502327,500110,325118,000Automobiles and trucks-200% declining balance; 5 years, all acquired after 2020.Leasehold improvements-Straight line.Land improvements-Straight line.Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2024 and other information:a. On January 6, 2024, a plant facility consisting of land and building was acquired from King Corporation in exchange for 35,000shares of Cord's common stock. On this date, Cord's stock had a fair value of $60 a share. Current assessed values of land andbuilding for property tax purposes are $255,000 and $595,000, respectively.b. On March 25, 2024, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of$252,000. These expenditures had an estimated useful life of 12 years.c. The leasehold improvements were completed on December 31, 2020, and had an estimated useful life of eight years. The relatedlease, which would terminate on December 31, 2026, was renewable for an additional four-year term. On April 30, 2024, Cordexercised the renewal option.d. On July 1, 2024, equipment was purchased at a total invoice cost of $335,000. Additional costs of $11,000 for delivery and $60,000for installation were incurred.e. On September 30, 2024, Cord purchased a new automobile for $13,500.f. On September 30, 2024, a truck with a cost of $25,000 and a book value of $11,000 on date of sale was sold for $12,500.Depreciation for the nine months ended September 30, 2024, was $2,475.g. On December 20, 2024, equipment with a cost of $22,000 and a book value of $3,225 at date of disposition was scrapped withoutcash recovery.Required:1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2024. Do not analyze changes inaccumulated depreciation and amortization.2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31,2024.Required 1 Required 2Prepare a schedule analyzing the changes in each of the plant asset accounts during 2024. Do not analyze changes inaccumulated depreciation and amortization.LandLand improvementsBuildingsEquipmentAutomobiles and trucksLeasehold improvementsCORD COMPANYAnalysis of Changes in Plant AssetsFor the Year Ending December 31, 2024Balance12/31/2023Increase$ 185,00002,000,0001,625,000182,000236,000$ 4,228,000DecreaseBalance12/31/2024

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At December 31, 2023, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation and Amortization Category Land Land improvements Buildings Equipment Automobiles and trucks Leasehold improvements Plant Asset $ 185,000 2,000,000 1,625,000 182,000 236,000 Depreciation methods and useful lives: Buildings-150% declining balance; 25 years. Equipment Straight line; 10 years. 438,502 327,500 110,325 118,000 Automobiles and trucks-200% declining balance; 5 years, all acquired after 2020. Leasehold improvements-Straight line. Land improvements-Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2024 and other information:

At December 31, 2023, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation and Amortization Category Land Land improvements Buildings Equipment Automobiles and trucks Leasehold improvements Plant Asset $ 185,000 2,000,000 1,625,000 182,000 236,000 Depreciation methods and useful lives: Buildings-150% declining balance; 25 years. Equipment Straight line; 10 years. 438,502 327,500 110,325 118,000 Automobiles and trucks-200% declining balance; 5 years, all acquired after 2020. Leasehold improvements-Straight line. Land improvements-Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2024 and other information:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

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On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000
On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not have a residual value and is estimated to be in service for 8 years. Calculate the depreciation expense for Years 1 and 2 using the double-declining-balance method. Round to the nearest dollar.
Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended December 31, 2020, and 3,330,000 for the year ended December 31, 2019. Additional information is as follows: Capital expenditures were 2,800,000 in 2020 and 4,000,000 in 2019. Included in the 2020 capital expenditures is equipment purchased for 1,000,000 on January 1, 2020, with no salvage value. Gray used straight-line depreciation based on a 10-year estimated life in its financial statements. As a result of additional information now available, it is estimated that this equipment should have only an 8-year life. Gray made an error in its financial statements that should be regarded as material. A payment of 180,000 was made in January 2020 and charged to expense in 2020 for insurance premiums applicable to policies commencing and expiring in 2019. No liability had been recorded for this item at December 31, 2019. The allowance for doubtful accounts reflected in Grays financial statements was 7,000 at December 31, 2020, and 97,000 at December 31, 2019. During 2020, 90,000 of uncollectible receivables were written off against the allowance for doubtful accounts. In 2019, the provision for doubtful accounts was based on a percentage of net sales. The 2020 provision has not yet been recorded. Net sales were 58,500,000 for the year ended December 31, 2020, and 49,230,000 for the year ended December 31, 2019. Based on the latest available facts, the 2020 provision for doubtful accounts is estimated to be 0.2% of net sales. A review of the estimated warranty liability at December 31, 2020, which is included in other liabilities in Grays financial statements, has disclosed that this estimated liability should be increased 170,000. Gray has two large blast furnaces that it uses in its manufacturing process. These furnaces must be periodically relined. Furnace A was relined in January 2014 at a cost of 230,000 and in January 2019 at a cost of 280,000. Furnace B was relined for the first time in January 2020 at a cost of 300,000. In Grays financial statements, these costs were expensed as incurred. Since a relining will last for 5 years, Grays management feels it would be preferable to capitalize and depreciate the cost of the relining over the productive life of the relining. Gray has decided to nuke a change in accounting principle from expensing relining costs as incurred to capitalizing them and depreciating them over their productive life on a straight-line basis with a full years depreciation in the year of relining. This change meets the requirements for a change in accounting principle under GAAP. Required: 1. For the years ended December 31, 2020 and 2019, prepare a worksheet reconciling income before income taxes as given previously with income before income taxes as adjusted for the preceding additional information. Show supporting computations in good form. Ignore income taxes and deferred tax considerations in your answer. The worksheet should have the following format: 2. As of January 1, 2020, compute the retrospective adjustment of retained earnings for the change in accounting principle from expensing to capitalizing relining costs. Ignore income taxes and deferred tax considerations in your answer.
Balance Sheet and Notes Listed here in random order are Wicks Construction Limiteds balance sheet accounts and related ending balances as of December 31, 2019: Additional information: 1. The company reports on the balance sheet the total amount for inventories and the net book value of property, plant, and equipment, with the related details for each account disclosed in notes. 2. The straight line method is used to depreciate buildings, machinery, and equipment, based upon their cost and estimated residual values and lives. A breakdown of property, plant, and equipment shows the following: land at a cost of 32,000, buildings at a cost of 182,400 and a net book value of 120,200, machinery at a cost of 63,900, and related accumulated depreciation of 18,600, and equipment (40% depreciated) at a cost of 53,000. 3. Patents are amortized on a straight line basis directly to the Patent account. 4. Inventories are listed at the lower of cost or market value using an average cost. The inventories include raw-materials, 22,200; work in process, 34,700; and finished goods, 41,600. 5. Common stock has a 10 par value per share, 12,000 shares are authorized, and 6,280 shares have been issued. 6. Preferred stock has a 100 par value per share, 1,000 shares are authorized, and 400 shares have been issued. 7. The investment in bonds is carried at the original cost, which is the face value, and is being held to maturity. 8. Short-term investments in marketable securities were purchased at year-end. 9. The bonds payable mature on December 31, 2024. 10. The company attaches a 1-year warranty on all the products it sells. Required: 1. Prepare Wicks Constructions December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare notes to accompany the balance sheet that itemize company accounting policies; inventories; and property, plant, and equipment. 3. Next Level Compute the current ratio and the quick ratio. How do these two ratios provide different information about the companys liquidity? Why are these ratios useful?
Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.