List the errors you find in the following partial balancesheet: Planet Bronze Co
ID: 2457646 • Letter: L
Question
List the errors you find in the following partial balancesheet:
Planet Bronze Company
Balance Sheet
December 31, 2008
Assets
Total CurrentAssets $478,000
Replacement Accumulated Book
Cost Depreciation Value
Property, Plan, and Equipment:
Land 80,000 16,000 64,000
Buildings 208,000 60,800 147,200
Factoryequipment 440,000 233,600 206,400
Officeequipment 96,000 64,000 32,000
Patents 64,000 - 64,000
Goodwill 36,000 4,000 32,000
Total property plant
andequipment 924,000 378,400 545,600
Explanation / Answer
For the long term assets section, assets are not valued at itsreplacement cost and should be shown at historical cost. Land has no depreciation. It is never depreciated. Patents and good will are listed under intangible assets.It ismisclassified. There is no accumulated depreciation forgoodwill. Here is the new balance sheet. Planet Bronze Company Balance Sheet Dec 31,2008 Total currentassets 478,000 Property,Plant & Equipment Land 80,000 Building 208,000 Less Acc.Dep 60,800 147,200 Factory Equip. 440,000 Less Acc.Dep 233,600 206,400 Office equip. 96,000 Less Acc.Dep 64,000 32,000 Total Property, plant andequipment 465,600 Intangible assets Patents 64,000 Goodwill 36,000 100,000 Totalassets 1,043,600
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