Venable Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.
In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized as follows.
On January 1, 2019, Evers Company purchased the following two machines for use in its production process.
At the beginning of 2015, Mazzaro Company acquired equipment costing $120,000. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $12,000 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year.
At December 31, 2019, Grand Company reported the following as plant assets.
Ceda Co. has equipment that cost $80,000 and that has been depreciated $50,000.
The intangible assets section of Sappelt Company at December 31, 2019, is presented below.
Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by Goins Company in 2019.
LaPorta Company and Lott Corporation, two corporation of roughly the same size, are both involved in the manufacture of in-line skates. Each company depreciates its plant assets using the straight-line approach. An investigation of their financial statements reveals the following information.
The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2019.
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