Complete Accounting Homework Assignment

Directions: Answer the following questions on a separate Microsoft Word or Excel document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in Blackboard.

Exercises

E9-9. Presented below are selected transactions at Ridge Company for 2015.

Jan.  1  Retired a piece of machinery that was purchased on January 1, 2005. The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value.

June 30  Sold a computer that was purchased on January 1, 2012. The computer cost $45,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000.

Dec. 31  Discarded a delivery truck that was purchased on January 1, 2011. The truck cost $33,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.

Instructions

Prepare Pryce Company’s journal entries to record the sale of the equipment in these four independent situations.

E9-11. On July 1, 2015, Friedman Inc. invested $720,000 in a mine estimated to have 900,000 tons of ore of uniform grade. During the last 6 months of 2015, 100,000 tons of ore were mined and sold.

Instructions

E10-12. Whitmore Company issued $500,000 of 5-year, 8% bonds at 97 on January 1, 2015. The bonds pay interest twice a year.

Instructions

(2) Compute the total cost of borrowing for these bonds.

E10-15. Jernigan Co. receives $300,000 when it issues a $300,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2015. The terms provide for semiannual installment payments of $25,000 on June 30 and December 31.

Instructions

Prepare the journal entries to record the mortgage loan and the first two installment payments.

Problems

P9-7A. The intangible assets section of Sappelt Company at December 31, 2015, is presented below.

The patent was acquired in January 2015 and has a useful life of 10 years. The franchise was acquired in January 2012 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2016.

Jan. 2  Paid $27,000 legal costs to successfully defend the patent against infringement by another company.

Jan.–June  Developed a new product, incurring $140,000 in research and development costs. A patent was granted for the product on July 1. Its useful life is equal to its legal life.

Sept. 1  Paid $50,000 to an extremely large defensive lineman to appear in commercials advertising the company’s products. The commercials will air in September and October.

Oct. 1  Acquired a franchise for $140,000. The franchise has a useful life of 50 years.

Instructions

P10-1A. On January 1, 2015, the ledger of Accardo Company contains the following liability accounts.

Accounts Payable $52,000

Sales Taxes Payable     7,700

Unearned Service Revenue   16,000

During January, the following selected transactions occurred.

Jan.        5  Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.

12   Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.)

14   Paid state revenue department for sales taxes collected in December 2014 ($7,700).

20   Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax.

21   Borrowed $27,000 from Girard Bank on a 3-month, 8%, $27,000 note.

25  Sold merchandise for cash totaling $12,420, which includes 8% sales taxes.

Instructions

ACC 557 Homework 3: Chapters 9 and 10 (4-22-2015)Page 1 of 3