Professional Documents
Culture Documents
9:
Exercise E9-3
(a)
Dec.
31
1,400
Dec.
31
8,100
Dec.
31
9,900
1,400
(b)
(1)
8,100
(2)
9,900
[($120,000 X 10%) $2,100]
(c)
(1)
Dec.
31
6,075
Dec.
31
7,400
6,075
(2)
7,400
[($120,000 X 6%) + $200]
Ch. 10:
Exercises E10-2
1.
2.
3.
4.
Factory Machinery
Truck
Factory Machinery
Land
5.
6.
7.
8.
9.
Prepaid Insurance
Land Improvements
Land Improvements
Land
Building
E10-7
(a)
(b)
(1)
(2)
(3)
(1)
Depreciation Expense....................................................................
Accumulated DepreciationDelivery Truck............................
3,500
3,500
(2)
Delivery Truck...............................................................................
$30,000
Less: Accumulated Depreciation..................................................
(3,500)
$26,500
E10-9
Jan.
Accumulated DepreciationMachinery...........................
Machinery...................................................................
62,000
Depreciation Expense...........................................................
Accumulated Depreciation
Computer ($40,000 X 1/5 X 6/12)..........................
4,000
62,000
June
30
4,000
30
Cash ...........................................................................14,000
Accumulated DepreciationComputer.............................
($40,000 X 3/5 = $24,000; $24,000 + $4,000)
Gain on Disposal.........................................................
28,000
2,000
[$14,000 ($40,000 $28,000)]
Computer....................................................................
40,000
Dec.
31
Depreciation Expense...........................................................
Accumulated DepreciationTruck..........................
6,000
6,000
[($39,000 $3,000) X 1/6]
31
Loss on Disposal...................................................................
Accumulated DepreciationTruck....................................
[($39,000 $3,000) X 5/6]
Delivery Truck............................................................
9,000
30,000
39,000
E10-13
1/2/08
Patents.................................................................................
Cash...........................................................................
560,000
560,000
4/1/08
Goodwill..............................................................................
Cash...........................................................................
360,000
(Part of the entry to record
purchase of another company)
360,000
7/1/08
Franchise.............................................................................
Cash...........................................................................
440,000
440,000
9/1/08
185,000
12/31/08
Amortization ExpensePatent.........................................
($560,000 7)
Amortization ExpenseFranchise....................................
[($440,000 10) X 1/2]
Patents..................................................................
80,000
Franchise..............................................................
22,000
80,000
22,000
Apr.
Land ...................................................2,130,000
Cash..........................................................
2,130,000
May
Depreciation Expense.......................................
Accumulated Depreciation
Equipment...........................................
26,000
26,000
($780,000 X 1/10 X 4/12)
1
780,000
Gain on Disposal.....................................
8,000
Cost $780,000
Accum. depreciation
equipment
338,000
338,000
[($780,000 X 1/10 X 4) +
$26,000]
Book value
Cash proceeds
Gain on disposal
June
442,000
450,000
$ 8,000
Cash ...................................................1,500,000
Land.........................................................
400,000
Gain on Disposal.....................................
1,100,000
July
Equipment.........................................................
Cash..........................................................
2,000,000
Depreciation Expense.......................................
Accumulated Depreciation
Equipment...........................................
50,000
2,000,000
Dec.
31
50,000
($500,000 X 1/10)
31
500,000
Accumulated Depreciation
Equipment.....................................................
Equipment...............................................
500,000
Cost $500,000
Accum. depreciation
equipment
($500,000 X 1/10 X 10)
Book value
(b)
Dec.
31
500,000
$
Depreciation Expense.......................................
Accumulated Depreciation
Buildings..............................................
570,000
570,000
($28,500,000 X 1/50)
31
Depreciation Expense.......................................
Accumulated Depreciation
Equipment...........................................
4,772,000
4,772,000
($46,720,000* X 1/10)
[($2,000,000 X 1/10) X 6/12]
$4,672,000
100,000
$4,772,000
(c)
JIMENEZ COMPANY
Partial Balance Sheet
December 31, 2009
Plant Assets*
Land ........................................................................
Buildings.................................................................
Less: Accumulated depreciation
buildings...............................................
15,830,000
Equipment..............................................................
Less: Accumulated depreciation
equipment.............................................
39,710,000
Total plant assets..........................................
$61,270,000
$5,730,000
$28,500,000
12,670,000
48,720,000
9,010,000
Bal.
Apr. 1
Bal.
Land
4,000,000 June 1
2,130,000
5,730,000
Bal.
Bal.
Buildings
28,500,000
28,500,000
400,000
Accumulated DepreciationBuildings
Bal.
12,100,000
Dec. 31 adj.
570,000
Bal.
12,670,000
Bal.
July 1
Bal.
Equipment
48,000,000 May 1
2,000,000 Dec. 31
48,720,000
780,000
500,000
Accumulated DepreciationEquipment
May 1
338,000 Bal.
5,000,000
Dec. 31 500,000
May 1
26,000
Dec. 31
50,000
Dec. 31 adj.
4,772,000
Bal.
9,010,000