ShipFaster Corporation provides a broad portfolio of transportation, e-commerce, and business services. ShipFaster reported the following information in its most recent annual report:

Requirements

1. Using the information provided from the balance sheet and statement of cash flows for ShipFaster, reconstruct the Property and Equipment and Accumulated Depreciation accounts. You will not have to account for individual asset categories, but only for the gross cost of property and equipment and accumulated depreciation. You will have to solve for the original gross cost and accumulated depreciation of the plant and equipment sold. Ignore business acquisitions for this part.

2. Prepare the journal entries to record total capital expenditures and total depreciation expense.

Transcribed Image Text:

A1 ShipFaster Corporation Partial Consolidated Balance Sheets May 31 2018 2 3 (in millions) 4 PROPERTY AND EQUIPMENT, AT COST 5 Aircraft and related equipment 6 Package handling and ground support equipment 7 Computer and electronic equipment 8 Vehicles 9 Facilities and other 10 Gross property and equipment 11 Less accumulated depreciation and amortization 12 Net property and equipment 13 2017 10,550 $ 4,510 4,330 2,760 6,720 28,870 (18,140) 10,730 $ 10,150 4,670 4,080 2,500 6,560 27,960 (17,900) 10,060 A1 ShipFaster Corporation Partial Statements of Cash Flows May 31 2017 2 (In millions) 3 4 Investing Activities 5 Capital expenditures 6 Business acquisitions 7 Proceeds from asset dispositions and other 8 Cash used in investing activities 2018 (3,440) $ (117) 514 (3,043) $ (2,940) (96) 103 (2,933) 9.