ACC 291 - PRINCIPLES OF ACCOUNTING II Week 2 Assignment

Question 1

Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2014 (in millions): other plant assets $977.3; land $205.8; patents and trademarks (at cost) $539.8; machinery and equipment $2,172.8; buildings $940; goodwill (at cost) $216.0; accumulated amortization $42.3; and accumulated depreciation $2,361.

Prepare a partial balance sheet for Nike for these items. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

Question 2

Match the statement with the term most directly associated with it.

Question 3

Wang Co. has delivery equipment that cost $54,570 and has been depreciated $24,980.

Record entries for the disposal under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 4

Here are selected 2014 transactions of Cleland Corporation.

Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Cleland Corporation uses straight-line depreciation. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 5

The financial statements of Tootsie Roll are presented below

What were the total cost and book value of property, plant, and equipment at December 31, 2011? (Enter the amounts in thousands.)

What was the amount of depreciation expense for each of the 3 years 2009–2011? (Hint: Use the statement of cash flows.) (Enter the amounts in thousands.)

Using the statement of cash flows, what are the amounts of property, plant, and equipment purchased (capital expenditures) in 2011 and 2010? (Enter the amounts in thousands.)

Question 6

The financial statements of The Hershey Company and Tootsie Roll are presented below.

The financial statements of The Hershey Company and Tootsie Roll are presented below.

Based on the information in these financial statements and the accompanying notes and schedules, compute the following values for each company in 2011. (Round all percentages to 1 decimal places, e.g. 15.1% and asset turnover ratio to 2 decimal places, e.g. 15.21.)

Question 7

At December 31, 2014, Navaro Corporation reported the following plant assets.

Journalize the transactions. Navaro uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Record adjusting entries for depreciation for 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the plant assets section of Navaro’s balance sheet at December 31, 2015. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2015 transactions.) (List Plant Assets in order of Land, Building and Equipment.)

Question 8

Presented below is an aging schedule for Bosworth Company.

Journalize the adjusting entry for bad debts at December 31, 2013. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Journalize the 2014 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Post to the allowance account these 2014 events. (Post entries in the order of journal entries posted in the previous part.)

Journalize the 2014 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 9

Post to the allowance account these 2014 events. (Post entries in the order of journal entries posted in the previous part.)

Journalize the adjusting entry for bad debts at December 31, 2014, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $2,000 and the aging schedule indicates that total estimated bad debts will be $42,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)