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6 b 1:57 0.01 K/s % 56% GA3_ACCT742 S...up Assignment 3 - Read-only ... Read Only - You can't save changes to th... GAZ ACCT142 Summer 2020 Group Assignment 3.docx Group Assignment 3 (GAS) for ACCT 742, Spring/Summer 2020 Stephen Hudovernik - The Business School Centennial College Part 3) Unfortunately, near the end of the year, Foot Faut had to terminate the employment of chn Smith, is coordinator for Property Plant and Equipment (PPS) tracking Smith had made several mistakes in tracking the PPE Continuity Schedule for Font Frule's Fine Art and Accumulated Depreciation Schedule From the depreciation calculated in the above document, a certain amount is allocated to inventory because of the use of the Fed Assets is the production of goods (tennis shirts, etc.) Smith had based his creation and maintenance of the PPE Continuity Schedule on these facts: Foot Fault uses Straight Line Depreciation for all PPE Assets Foot Faul's land was purchased November 1, 2010 for $3,000,000. Smith had a casual conversation with some of Foot Fault's loading deck employees who said this piece of land is in a good location will be good for something like 100 years". Smith decided to use this statement in his calculations of the PPE Continuity Schedule . Al equipment currently used by Foot Fault was originally purchased on November 1, 2016. Acquisition costs were $1.900.000 and all other costs combined used to bring the equipment to its intended us were $100.000 The equipment has an estimated useful life of 10 years and no salvage value On November 1, 2019 Foot Fault moved into a new building which included all production, distribution and administrative functions (le all functions. Foot Fault paid $5,000,000 for the building's construction and to bring it to its intended use. The building has an estimated useful life of 50 years and no salvage value Foot Fault recently purchased a truck an asset they had never before owned. This eliminated most of the expense of paying shipping companies to move finished good to customers. The truck was purchased on May 1. 2020 Foot Fault paid $105.000 for the truck and to bring it to its intended use. The truck has an estimated useful le of years and a 55,000 salvage Value Michele asked to see the PPE Continuity Schedule as part of her substantive testing and the below was provided Port 3. continues on next page GAS ACCT Summer 2020 Group Assignment 3.docx 1:57 56% 0.08 K/s Read Only - You can't save changes to th... GAHACCPM2 Somer 2020 Group Assignment 3.docx Group Assignment 3 (GA3) for ACCT 742, Spring/Summer 2020 Swephen Hudovernik - The Business School Centennial College Aast October 31, 2000 PROPERTY, PLANT AND EQUIPMENT CONTINUITY SCHEDULE FOR ASSSET AND DEPRECIATION Asset Cost In 00 Accumulated Depreciation 5000 Beginning Ending Beginning Ending Balance Added Sold Added Balance 3.000 3.000 270 300 1.800 1,500 190 990 0 5.000 5.000 100 100 200 . 105 Land Coment Building Truck TOTAL 4.800 5,105 10.00 SO 340 900 Land: Entered intended use November 1, 2010, Depreciated over 100 years Annual Straight Line Depreciation: 51,000,000/100 years $10,000 Equipment Entered intended use November 1, 2018 Depreciated over 10 years and to salvage wale Annual Straight Line Depreciation $1,900,000/ 10 years $190,000 Building Entered intended use November 1, 2019 Depreciated over 5 years and to salvage wale Annual Straight Line Depreciation: $5,000,000/Syrors - $100,000 Truck: Entered intended use May 1, 2020 Depreciated over 5 years and Spoo salvage value Annual Straight Line Depreciation: 15105,000-$5,0001/5 years $20,000 Required From the above PPRE Continuity Schedule, identify four errors. No need for journal entries:simply identity errors, explain why each is an error and state the correct amounts Example response template None provided: Groups to explain in sentences the errors. II GAZ ACCT 42 Summer 2020 Group Assignment 3.docx Group Assignment GAS for ACCT 742. Spring/Summer 2020 Stephen Hudovernik - The Business School Centennial College [Part 4) 6 b 1:57 0.01 K/s % 56% GA3_ACCT742 S...up Assignment 3 - Read-only ... Read Only - You can't save changes to th... GAZ ACCT142 Summer 2020 Group Assignment 3.docx Group Assignment 3 (GAS) for ACCT 742, Spring/Summer 2020 Stephen Hudovernik - The Business School Centennial College Part 3) Unfortunately, near the end of the year, Foot Faut had to terminate the employment of chn Smith, is coordinator for Property Plant and Equipment (PPS) tracking Smith had made several mistakes in tracking the PPE Continuity Schedule for Font Frule's Fine Art and Accumulated Depreciation Schedule From the depreciation calculated in the above document, a certain amount is allocated to inventory because of the use of the Fed Assets is the production of goods (tennis shirts, etc.) Smith had based his creation and maintenance of the PPE Continuity Schedule on these facts: Foot Fault uses Straight Line Depreciation for all PPE Assets Foot Faul's land was purchased November 1, 2010 for $3,000,000. Smith had a casual conversation with some of Foot Fault's loading deck employees who said this piece of land is in a good location will be good for something like 100 years". Smith decided to use this statement in his calculations of the PPE Continuity Schedule . Al equipment currently used by Foot Fault was originally purchased on November 1, 2016. Acquisition costs were $1.900.000 and all other costs combined used to bring the equipment to its intended us were $100.000 The equipment has an estimated useful life of 10 years and no salvage value On November 1, 2019 Foot Fault moved into a new building which included all production, distribution and administrative functions (le all functions. Foot Fault paid $5,000,000 for the building's construction and to bring it to its intended use. The building has an estimated useful life of 50 years and no salvage value Foot Fault recently purchased a truck an asset they had never before owned. This eliminated most of the expense of paying shipping companies to move finished good to customers. The truck was purchased on May 1. 2020 Foot Fault paid $105.000 for the truck and to bring it to its intended use. The truck has an estimated useful le of years and a 55,000 salvage Value Michele asked to see the PPE Continuity Schedule as part of her substantive testing and the below was provided Port 3. continues on next page GAS ACCT Summer 2020 Group Assignment 3.docx 1:57 56% 0.08 K/s Read Only - You can't save changes to th... GAHACCPM2 Somer 2020 Group Assignment 3.docx Group Assignment 3 (GA3) for ACCT 742, Spring/Summer 2020 Swephen Hudovernik - The Business School Centennial College Aast October 31, 2000 PROPERTY, PLANT AND EQUIPMENT CONTINUITY SCHEDULE FOR ASSSET AND DEPRECIATION Asset Cost In 00 Accumulated Depreciation 5000 Beginning Ending Beginning Ending Balance Added Sold Added Balance 3.000 3.000 270 300 1.800 1,500 190 990 0 5.000 5.000 100 100 200 . 105 Land Coment Building Truck TOTAL 4.800 5,105 10.00 SO 340 900 Land: Entered intended use November 1, 2010, Depreciated over 100 years Annual Straight Line Depreciation: 51,000,000/100 years $10,000 Equipment Entered intended use November 1, 2018 Depreciated over 10 years and to salvage wale Annual Straight Line Depreciation $1,900,000/ 10 years $190,000 Building Entered intended use November 1, 2019 Depreciated over 5 years and to salvage wale Annual Straight Line Depreciation: $5,000,000/Syrors - $100,000 Truck: Entered intended use May 1, 2020 Depreciated over 5 years and Spoo salvage value Annual Straight Line Depreciation: 15105,000-$5,0001/5 years $20,000 Required From the above PPRE Continuity Schedule, identify four errors. No need for journal entries:simply identity errors, explain why each is an error and state the correct amounts Example response template None provided: Groups to explain in sentences the errors. II GAZ ACCT 42 Summer 2020 Group Assignment 3.docx Group Assignment GAS for ACCT 742. Spring/Summer 2020 Stephen Hudovernik - The Business School Centennial College [Part 4)

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