Question

Presented below are selected accounts of Skysong Resort Corporation at December 31, 2025. The following additional information is available: 1. Furnishings are recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $81,000. 2. Hotel properties are recorded at constructed cost. Depreciation is computed on a straight-line basis. Accumulated depreciation is now at 50% of the constructed cost. 3. Accumulated Depreciation on the vehicles is now at 80% of their stated cost. Depreciation is computed using the decliningbalance method. Prepare the Property, plant, and equipment section of Skysong's December 31, 2025 balance sheet. (List Property, plant, and equipment in order of land, hotel properties, and furnishings.) Additional Paid-in Capital Capital Stock Current Assets Current Liabilities Intangible Assets Long-term Debt Long-term Investments Property, Plant, and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Paid-in Capital 4. Total Paid-in Capital and Retained Earnings Prepare the Property, plant, and equipment section of Skysong's December 31, 2025 balance sheet. (List Property, plant, and equipment in order of land, hotel properties, and furnishinss.)

Answer 1

To prepare the Property, Plant, and Equipment section of Skysong Resort Corporation's balance sheet, list the accounts in the order of land, hotel properties, and furnishings. Compute the constructed cost and accumulated depreciation for hotel properties. Subtract the accumulated depreciation from the recorded cost to find the net value of furnishings.

Step-by-step explanation:

To prepare the Property, Plant, and Equipment section of Skysong Resort Corporation's balance sheet as of December 31, 2025, we need to list the accounts in the order of land, hotel properties, and furnishings.

1. Land: Since there is no additional information provided about land, we can assume the recorded value is the cost.
2. Hotel Properties: The accumulated depreciation for hotel properties is given as 50% of the constructed cost. So, we need to compute the constructed cost and then multiply it by the depreciation rate to find the accumulated depreciation.
3. Furnishings: The accumulated depreciation for furnishings is given as $81,000, and it is computed on a straight-line basis. So, we can subtract the accumulated depreciation from the recorded cost to get the net value of furnishings.