Homework Help is Here – Start Your Trial Now!
Business
Accounting
r 2020, these are sections  Asset Type Date of purchase Cost Useful life from the date of purchase Depreciation/ Amortization me

r 2020, these are sections  Asset Type Date of purchase Cost Useful life from the date of purchase Depreciation/ Amortization me

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

using the information can you create a balance sheet for 2020, these are sections 

Asset Type

Date of purchase

Cost

Useful life from the date of purchase

Depreciation/ Amortization method

Applicable depreciation rate
The December 31st, 2020 cash balance was $324,800. The Land, Building and Parking Lot were a basket purchase. An independent expert has valued the land at $1,000,000, the building at $400,000 and the parking lot at $100,000. In 2020 Rissot's equipment produced 400 units and it ended the year with 2200 units of useful life. Its timber tract will cost $150,000 to restore and 200 sq. kms of the tract were used in 2020 and 700 sq. kms of useful life was left after 2020. Shortly after the patents were acquired the organization successfully defended the patent in court. This cost the organization $25,000. Delivery van 1 was disposed of on December 31, 2020 for $12,000. The van's NBV was $9,000. Delivery van 2 had $350 worth of lettering added to the driver's and passenger's side doors which read Rissot soon after its purchase.
Transcribed Image Text:The December 31st, 2020 cash balance was $324,800. The Land, Building and Parking Lot were a basket purchase. An independent expert has valued the land at $1,000,000, the building at $400,000 and the parking lot at $100,000. In 2020 Rissot's equipment produced 400 units and it ended the year with 2200 units of useful life. Its timber tract will cost $150,000 to restore and 200 sq. kms of the tract were used in 2020 and 700 sq. kms of useful life was left after 2020. Shortly after the patents were acquired the organization successfully defended the patent in court. This cost the organization $25,000. Delivery van 1 was disposed of on December 31, 2020 for $12,000. The van's NBV was $9,000. Delivery van 2 had $350 worth of lettering added to the driver's and passenger's side doors which read Rissot soon after its purchase.
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Events after the reporting period
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS