Financial Accounting > CASE STUDY > ACC 3455Fixed Assets Lead Schedule (All)

ACC 3455Fixed Assets Lead Schedule

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According to Sam Shaw, the fixed asset coordinator, Apollo Shoes moved into new quarters and acquired new equipment in February 2010. Up to that time, Apollo purchased only a fleet of vehicles for ke ... y executives and rented everything else. (All of their salesmen rent cars on an as needed basis for visiting clients.) Since the move, there have been only three major capital additions: • Apollo repaired damage to the new building from a hurricane in April. Also, the building was repainted at the same time. I examined an invoice from ZZZ Best Building Repair Company for $50,408.00 as well as the cancelled check. This amount should be expensed and not depreciated. The following adjusting entry is proposed to expense the repairs and reverse the recorded depreciation: • The company purchased and installed new machinery to make shoes themselves. Apparently, they have been buying all the shoes pre-made from an overseas company. The machinery was installed in January, but hasn’t yet been operated. They hope to start production in January 2012. I examined an invoice for $1,295,359.98 (F-1.1)as well as the cancelled check. This amount should be depreciated over a 5 year period and depreciation should begin this year. However, this machinery was calculated over 7 years. The amount is calculated on F-2. Needs adjusting entry. • Apollo purchased and installed a new computer system in July. I examined three invoices and related cancelled checks for $1,200,519.90. One was to Smart Chip for $1,000,000. One was to FastMove for moving services for 519.90. The third was to Professor Josephine Mandeville for $200,000 for “system analysis consulting.” All of these expenses should be added to cost of the equipment and be depreciated over 5 years. • I scanned the invoices in the Repairs and Maintenance account. Repairs and small capital additions (<$5,000) were expensed according to company policy. • I examined the titles of the land, building, and vehicles. All listed “Apollo Shoes, Inc.” as titleholder. No new land was purchased or disposed of during the year (F-1.1) [Show More]

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