Question

FIXED ASSETS

Listed below are T-accounts for total ‘Property and Equipment’ and ‘Accumulated Depreciation’ for Outback. According to the footnotes, accumulated depreciation on the property and equipment was $354,395 and $287,181 at the end of 2002 and 2001, respectively. Recreate the T-accounts for the year ended December 31, 2002 by entering the beginning balances, the 2002 activity and the ending balances. The 2002 activity includes only the following:

(in thousands)	Outback Steakhouse
	Balance Sheet
	12/31/2002	12/31/2001
Assets
Current Assets
Cash and cash equivalents	$187,578	$115,928
Short term investments	$20,576	$20,310
Inventories	$34,637	$38,775
Other current assets	$31,386	$31,347
Total current assets	$274,177	$206,360
Property and equipment, net	$915,022	$813,065
Other assets	$200,376	$218,323
Total Assets	$1,389,575	$1,237,748
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable	$70,724	$60,275
Unearned revenue	$135,286	$116,722
Income taxes payable	$15,647	$0
Current portion of long-term debt	$17,464	$12,763
Total current liabilities	$239,121	$189,760
Long-term debt	$14,436	$13,830
Other long-term liabilities	$83,042	$92,314
Total Liabilities	$336,599	$295,904
Common Stock, $0.01 par value; 78,750 and 78,554 shares issued at December 31, 2002 and 2001, respectively	$788	$786
Additional paid-in capital	$229,459	$220,648
Retained earnings	$909,677	$762,414
Less Treasury Stock, 2,870 shares and 1,641 shares at December 31, 2002 and 2001, respectively	($86,948)	($42,004)
Total stockholders equity	$1,052,976	$941,844
Liabilities and Stockholders’ Equity	$1,389,575	$1,237,748

• Purchase of property and equipment, $181,798

• Depreciation, $73,288

• Sale of property and equipment

Answer 1

Plant property & Equipment

Date	Particulars	Debit	credit
1.01.2002	To Opening balance(813065+287181)	$1100246
	To purchase	$181798
	By sale ( Balancing Figure)		$12627
31.12.2002	By Closing Balance(915022+354395)		$1269417

Accumulated Depreciation

Date	Particulars	Debit	Credit
1.01.2002	By Opening Balance		$287181
	By Depreciation expense		$73288
	To reversal of Depreciation due to sale (balancing figure)	$6074
31.12.2002	To Closing balance	$354395