Supply the correct amount for each answer box on the

Assignment Help Accounting Basics

Reference no: EM13572378

The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2011. The accounting department of Thompson has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel:

a.	Depreciation is computed from the first of the month of acquisition to the first of the month of disposition.
b.	Land A and Building A were acquired from a predecessor corporation. Thompson paid $802,500 for the land and building together. At the time of acquisition, the land had a fair value of $106,800 and the building had a fair value of $783,200.
c.	Land B was acquired on October 2, 2011, in exchange for 2,900 newly issued shares of Thompson's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $24 per share. During October 2011, Thompson paid $10,300 to demolish an existing building on this land so it could construct a new building.
d.	Construction of Building B on the newly acquired land began on October 1, 2012. By September 30, 2013, Thompson had paid $200,000 of the estimated total construction costs of $290,000. Estimated completion and occupancy are July 2014.
e.	Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $15,600 and the residual value at $1,900.
f.	Machine A's total cost of $113,000 includes installation charges of $540 and normal repairs and maintenance of $10,900. Residual value is estimated at $5,300. Machine A was sold on February 1, 2013.
g.	On October 1, 2012, Machine B was acquired with a down payment of $3,900 and the remaining payments to be made in 10 annual installments of $3,900 each beginning October 1, 2013. The prevailing interest rate was 7%.

Required:

Supply the correct amount for each answer box on the schedule. (Use PVAD of $1.) (Round "PV Factor" to 5 decimal places. Do not round intermediate calculations. Round your answers to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required.)

THOMPSON CORPORATION
Fixed Asset and Depreciation Schedule
For Fiscal Years Ended September 30, 2012, and September 30, 2013
							Depreciation for
							Year Ended 9/30

	Acquisition				Depreciation	Estimated
Assets	Date	Cost	Residual		Method	Life in Years	2012		2013
Land A	10/1/11	$		N/A	N/A	N/A		N/A	N/A
Building A	10/1/11		$	25,100	SL		$	13,900	$
Land B	10/2/11			N/A	N/A	N/A		N/A	N/A
Building B	Under construction	200,000 to date		-	SL	30		-
Donated Equipment	10/2/11			1,900	150 Declining balance	10
Machine A	10/2/11			5,300	Sum-of-the- years' digits	10
Machine B	10/1/12			-	SL	16		-
N/A = not applicable

Reference no: EM13572378

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