accounting homework help
Brian_1234
Chapter_9_Homework.pdf
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 1/20
1.
Student: Tam Pham Date: 08/11/20
Instructor: Perry Sellers Course: ACCT 2301.1007 SSII 2020 Assignment: Chapter 9 Homework
1: Requirements
(1) all of the assets. the building. the building and the land. the building and the land improvements.
the land. the land and the land improvements. the land improvements.
Furniture purchased land, paying cash and signing a note payable. In addition, paid delinquent property tax of , title insurance costing , and to level the land and remove an unwanted building. The company then constructed an office building at a cost of . It also paid for a fence around the property, for a sign near the entrance, and for special lighting of the grounds.
Lavallee $95,000 $340,000 Lavallee $1,500 $3,000 $7,000
$600,000 $55,000 $13,000 $5,000
Read the requirements .1
Requirement 1. Determine the cost of the land, land improvements, and building.
The cost of the land is
The total cost of the land improvements is
The cost of the building is
Requirement 2. Which of these assets will depreciate? Lavallee
will depreciate (1) Lavallee
1. Determine the cost of the land, land improvements, and building. 2. Which of these assets will depreciate?Lavallee
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 2/20
2.
2: Data Table
(1) Accumulated Depreciation Building Cash
Depreciation Expense Gain on Disposal Land—Lot 1 Land—Lot 2
Land—Lot 3 Loss on Disposal Notes Payable
(2) Accumulated Depreciation Building Cash
Depreciation Expense Gain on Disposal Land—Lot 1 Land—Lot 2
Land—Lot 3 Loss on Disposal Notes Payable
(3) Accumulated Depreciation Building Cash
Depreciation Expense Gain on Disposal Land—Lot 1 Land—Lot 2
Land—Lot 3 Loss on Disposal Notes Payable
(4) Accumulated Depreciation Building Cash
Depreciation Expense Gain on Disposal Land—Lot 1 Land—Lot 2
Land—Lot 3 Loss on Disposal Notes Payable
(5) To record depreciation on lots. To record purchase of the lots with cash. To record purchase of the lots with notes payable.
To record sale of lots.
Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows: Eastwood
(Click the icon to view the values.)2
paid in cash. Record the purchase in the journal, identifying each lot's cost in a separate Land account. Round decimals to two places, and use the computed percentages throughout. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Eastwood $265,000
Date Accounts and Explanation Debit Credit
(1)
(2)
(3)
(4)
(5)
Lot Appraised Value
1 41,000$
2 102,500
3 266,500
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 3/20
3.
3: Requirements
On 1, , purchased a used airplane at a cost of . expects the plane to remain useful for years ( miles) and to have a residual value of . expects the plane to be flown miles the first year and miles the second year.
January 2018 Air Canada $70,000,000 Air Canada eight 6,000,000 $4,000,000 Air Canada
1,400,000 1,000,000
Read the requirements .3
Requirement 1a. Compute second-year ( ) depreciation expense on the plane using the straight-line method.2019
Begin by selecting the formula to calculate the company's second-year depreciation expense on the plane using the straight-line method. Then enter the amounts and calculate the depreciation expense for the second year.
( (1) - (2) ) / (3) = Straight-line depreciation
( - ) / =
Requirement 1b. Compute second-year ( ) depreciation expense on the plane using the units-of-production method.2019
Before calculating the second-year depreciation expense on the plane using the units-of-production method, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation expense per unit.
( (4) - (5) ) / (6) = Depreciation per unit
( - ) / =
Now, select the formula, enter the amounts and calculate the company's second-year depreciation expense on the plane using the units-of-production method.
(7) x (8) = Units-of-production depreciation
x =
Requirement 1c. Compute second-year ( ) depreciation expense on the plane using the double-declining-balance method.
2019
Begin by selecting the formula to calculate the company's second-year depreciation expense on the plane using the double-declining-balance method. Then enter the amounts and calculate the depreciation expense for the second year.
Double-declining-
( (9) - (10) ) x (11) = balance depreciation
( - ) x (12) =
Requirement 2. Calculate the balance in Accumulated Depreciation at the end of the second year for all three methods.
Straight-Line Units-of-production Double-declining-balance
Depreciation Expense - 2018
Depreciation Expense - 2019
Accumulated Depreciation ending balance
1. Compute second-year ( ) depreciation expense on the plane using the following methods:2019 a. Straight-line b. Units-of-production c. Double-declining-balance
2. Calculate the balance in Accumulated Depreciation at the end of the second year for all three methods.
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 4/20
(1) Accumulated depreciation Cost Current year usage
Depreciation Depreciation per unit Net book value Residual value
Useful life
(2) Accumulated depreciation Cost Current year usage
Depreciation Depreciation per unit Net book value Residual value
Useful life
(3) Accumulated depreciation Cost Current year usage
Depreciation Depreciation per unit Net book value Residual value
Useful life
(4) Accumulated depreciation Cost Current year usage
Depreciation Depreciation per unit Net book value Residual value
Useful life in units
(5) Accumulated depreciation Cost Current year usage
Depreciation Depreciation per unit Net book value Residual value
Useful life in units
(6) Accumulated depreciation Cost Current year usage
Depreciation Depreciation per unit Net book value Residual value
Useful life in units
(7) Accumulated depreciation Cost Current year usage
Depreciation Depreciation per unit Net book value Residual value
Useful life
(8) Accumulated depreciation Cost Current year usage
Depreciation Depreciation per unit Net book value Residual value
Useful life
(9) 2 x (1 / Useful life) 3 x (1 / Useful life) 3 + (1 / Useful life)
Accumulated depreciation Cost Current year usage Depreciation
Depreciation per unit Net book value Residual value Useful life
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 5/20
(10) 2 x (1 / Useful life) 3 x (1 / Useful life) 3 + (1 / Useful life)
Accumulated depreciation Cost Current year usage Depreciation
Depreciation per unit Net book value Residual value Useful life
(11) 2 x (1 / Useful life) 3 x (1 / Useful life) 3 + (1 / Useful life)
Accumulated depreciation Cost Current year usage Depreciation
Depreciation per unit Net book value Residual value Useful life
(12) 2 x (1 / 8) 3 x (1 / 8) 3 + (1 / 8)
8 11
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 6/20
4. Fried Chicken bought equipment on , , for . The equipment was expected to remain in service for four years and to operate for hours. At the end of the equipment's useful life, estimates that its residual value will be The equipment operated for hours the first year, hours the second year, hours the third year, and hours the fourth year.
Seconds January 2 2018 $21,000 6,000 Seconds
$3,000. 600 1,800 2,400 1,200
Read the requirements .4
Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared.
Begin by preparing a depreciation schedule using the straight-line method.
Straight-Line Depreciation Schedule
Depreciation for the Year
Asset Depreciable Useful Depreciation Accumulated Book
Date Cost Cost Life Expense Depreciation Value
1-2-2018
12-31-2018 / (1) =
12-31-2019 / (2) =
12-31-2020 / (3) =
12-31-2021 / (4) =
Before calculating the units-of-production depreciation schedule, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation expense per unit.
( (5) - (6) ) / (7) = Depreciation per unit
( - ) / =
Prepare a depreciation schedule using the units-of-production method.
Units-of-Production Depreciation Schedule
Depreciation for the Year
Asset Depreciation Number of Depreciation Accumulated Book
Date Cost Per Unit Units Expense Depreciation Value
1-2-2018
12-31-2018 x =
12-31-2019 x =
12-31-2020 x =
12-31-2021 x =
Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Enter a "0" for any items with a zero value.)
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 7/20
4: Requirements
(1) 2 x (1/4) 4 years 4 years x 2
6,000 (2) 2 x (1/4) 4 years 4 years x 2
6,000 (3) 2 x (1/4) 4 years 4 years x 2
6,000
(4) 2 x (1/4) 4 years 4 years x 2
6,000 (5) Accumulated depreciation Cost Residual value
Useful life in units Useful life in years
(6) Accumulated depreciation Cost Residual value
Useful life in units Useful life in years
(7) Accumulated depreciation Cost Residual value
Useful life in units Useful life in years
(8) 2 x (1/4) 4 years 4 years x 2
6,000
(9) 2 x (1/4) 4 years 4 years x 2
6,000 (10) double-declining-balance straight-line units-of-production
Double-Declining-Balance Depreciation Schedule
Depreciation for the Year
Asset Book DDB Depreciation Accumulated Book
Date Cost Value Rate Expense Depreciation Value
1-2-2018
12-31-2018 x (8) =
12-31-2019 x (9) =
12-31-2020 =
12-31-2021 =
Requirement 2. Which method tracks the wear and tear on the equipment most closely?
The (10) method tracks wear and tear most closely.
1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared.
2. Which method tracks the wear and tear on the equipment most closely?
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 8/20
5.
(1) Accumulated Depreciation—Equipment Cash Depreciation Expense—Equipment
Equipment Gain on Disposal Loss on Disposal Maintenance Expenses
(2) Accumulated Depreciation—Equipment Cash Depreciation Expense—Equipment
Equipment Gain on Disposal Loss on Disposal Maintenance Expenses
(3) Accumulated Depreciation—Equipment Cash Depreciation Expense—Equipment
Equipment Gain on Disposal Loss on Disposal Maintenance Expenses
(4) Accumulated Depreciation—Equipment Cash Depreciation Expense—Equipment
Equipment Gain on Disposal Loss on Disposal Maintenance Expenses
(5) Discarded fully depreciated equipment. Sold equipment for cash. To record depreciation on equipment.
To record sale of land.
On 15, , Furniture discarded equipment that had a cost of , a residual value of $0, and was fully depreciated. Journalize the disposal of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
June 2017 Modern $14,000
Date Accounts and Explanation Debit Credit
Jun. 15 (1)
(2)
(3)
(4)
(5)
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 9/20
6.
(1) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
(2) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
(3) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
purchased equipment on 1, , for . Suppose sold the equipment for on Accumulated Depreciation as of 31, , was . Journalize the sale of the equipment, assuming straight-line depreciation was used.
Mill Creek Golf Club January 2018 $30,987 Mill Creek Golf Club $22,000 December 31, 2019. December 2019 $13,772
First, calculate any gain or loss on the disposal of the equipment.
Market value of assets received
Less: Book value of asset disposed of
Cost
Less: Accumulated Depreciation
Gain or (Loss)
Now, journalize the sale of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Date Accounts and Explanation Debit Credit
Dec. 31 (1)
(2)
(3)
(4)
(5)
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 10/20
(4) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
(5) Discarded equipment with a book value. Discarded fully depreciated equipment. Sold equipment for cash.
To record depreciation on equipment.
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 11/20
7.
(1) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
(2) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
On , , Landscapes discarded equipment that had a cost of . Accumulated Depreciation as of 31, , was . Assume annual depreciation on the equipment is . Journalize the partial-year
depreciation expense and disposal of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
April 30 2018 Perfect $25,680 December 2017 $24,000 $1,680
Journalize the partial-year depreciation expense.
Date Accounts and Explanation Debit Credit
Apr. 30 (1)
(2)
(3)
(4)
(5)
Calculate any gain or loss on the disposal of the equipment. (Enter a "0" for items with a zero value. Enter a loss with a minus sign or parentheses.)
Market value of assets received
Less: Book value of asset disposed of
Cost
Less: Accumulated Depreciation
Gain or (Loss)
Journalize the disposal of the equipment.
Date Accounts and Explanation Debit Credit
Apr. 30 (6)
(7)
(8)
(9)
(10)
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 12/20
(3) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
(4) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
(5) Discarded equipment with a book value. Sold equipment for cash. To record depreciation on equipment.
To record sale of land.
(6) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
(7) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
(8) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
(9) Accumulated Depreciation—Equipment Book value Cash
Depreciation Expense—Equipment Equipment Gain on Disposal Loss on Disposal
Maintenance Expenses
(10) Discarded equipment with a book value. Sold equipment for cash. To record depreciation on equipment.
To record sale of land.
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 13/20
8.
(1) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
(2) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
Mountain Mining paid for the right to extract mineral assets from a -ton deposit. In addition to the purchase price, also paid a filing fee, a license fee to the state of Nevada, and for a geological survey of the property. Because purchased the rights to the minerals only and did not purchase the land, it expects the asset to have zero residual value. During the first year, removed and sold tons of the minerals. Make journal entries to record (a) purchase of the minerals (debit Minerals), (b) payment of fees and other costs, and (c) depletion for the first year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Mighty $211,900 250,000 Mighty $1,000 $2,100 $60,000
Mighty Mighty 20,000
Begin by journalizing (a) the purchase of the minerals (debit Mineral asset). (Do not record payment for any additional costs associated with the minerals. We will do this in entry b.)
Date Accounts and Explanation Debit Credit
a. (1)
(2)
(3)
(4)
(5)
Journalize (b) the payment of fees and other costs. (Record a single compound journal entry.)
Date Accounts and Explanation Debit Credit
b. (6)
(7)
(8)
(9)
(10)
Journalize (c) the depletion for the first year. (Round depletion per ton to the nearest cent.)
Date Accounts and Explanation Debit Credit
c. (11)
(12)
(13)
(14)
(15)
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 14/20
(3) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
(4) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
(5) To record payment of costs associated with purchase of minerals. To record purchase of mineral rights. To record depletion.
To record depreciation. To record the sale of mineral rights.
(6) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
(7) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
(8) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
(9) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
(10) To record payment of costs associated with purchase of minerals. To record purchase of mineral rights. To record depletion.
To record depreciation. To record the sale of mineral rights.
(11) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 15/20
(12) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
(13) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
(14) Accumulated Depletion—Minerals Accumulated Depreciation—Minerals Cash
Depletion Expense—Minerals Depreciation Expense—Minerals Minerals Notes Payable
(15) To record payment of costs associated with purchase of minerals. To record purchase of mineral rights. To record depletion.
To record depreciation. To record the sale of mineral rights.
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 16/20
9.
5: Requirements
(1) Amortization Expense—Patent Assets Cash
Depreciation Expense—Patent Gain on Disposal Goodwill Liabilities
Loss on Disposal Notes Payable Patent
(2) Amortization Expense—Patent Assets Cash
Depreciation Expense—Patent Gain on Disposal Goodwill Liabilities
Loss on Disposal Notes Payable Patent
On 1, , Company purchased a patent for cash. Although the patent gives legal protection for 20 years, the patent is expected to be used for only years.
August 2018 Enhance $108,000 five
Read the requirements .5
Requirement 1. Journalize the purchase of the patent. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Date Accounts and Explanation Debit Credit
Aug. 1 (1)
(2)
(3)
(4)
(5)
Requirement 2. Journalize the amortization expense for the year ended 31, . Assume straight-line amortization.
December 2018
Begin by calculating the amortization expense for . Select the formula, enter the amounts and calculate the amortization expense. (Enter a "0" for items with a zero value. Do not round intermediary calculations. Only round the amount you input for straight-line amortization to the nearest dollar.))
2018
Straight-line
[( (6) - (7) ) / (8) ] x ( (9) / 12 ) = amortization
[( - ) / ] x ( / 12 ) =
Now, journalize the amortization expense for . (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
2018
Date Accounts and Explanation Debit Credit
Dec. 31 (10)
(11)
(12)
(13)
(14)
1. Journalize the purchase of the patent. 2. Journalize the amortization expense for the year ended 31, . Assume straight-line amortization.December 2018
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 17/20
(3) Amortization Expense—Patent Assets Cash
Depreciation Expense—Patent Gain on Disposal Goodwill Liabilities
Loss on Disposal Notes Payable Patent
(4) Amortization Expense—Patent Assets Cash
Depreciation Expense—Patent Gain on Disposal Goodwill Liabilities
Loss on Disposal Notes Payable Patent
(5) To record amortization of patent. To record impairment loss on patent. To record purchase of patent.
To record purchase of the company.
(6) Acc. Depreciation Cost Net book value
Number of months Residual value Useful life
(7) Acc. Depreciation Cost Net book value
Number of months Residual value Useful life
(8) Acc. Depreciation Cost Net book value
Number of months Residual value Useful life
(9) Acc. Depreciation Cost Net book value
Number of months Residual value Useful life
(10) Amortization Expense—Patent Assets Cash
Depreciation Expense—Patent Gain on Disposal Goodwill Liabilities
Loss on Disposal Notes Payable Patent
(11) Amortization Expense—Patent Assets Cash
Depreciation Expense—Patent Gain on Disposal Goodwill Liabilities
Loss on Disposal Notes Payable Patent
(12) Amortization Expense—Patent Assets Cash
Depreciation Expense—Patent Gain on Disposal Goodwill Liabilities
Loss on Disposal Notes Payable Patent
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 18/20
(13) Amortization Expense—Patent Assets Cash
Depreciation Expense—Patent Gain on Disposal Goodwill Liabilities
Loss on Disposal Notes Payable Patent
(14) To record amortization of patent. To record impairment loss on patent. To record purchase of patent.
To record purchase of the company.
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 19/20
10.
(1) Assets Cash Equity
Gain on Disposal Goodwill Liabilities Loss on Disposal
Notes Payable
(2) Assets Cash Equity
Gain on Disposal Goodwill Liabilities Loss on Disposal
Notes Payable
(3) Assets Cash Equity
Gain on Disposal Goodwill Liabilities Loss on Disposal
Notes Payable
has acquired several other companies. Assume that purchased for cash. The book value of assets is (market value, ), and it has liabilities of (market value,
).
Pilgrim Pilgrim Kate $11,000,000 Kate's $13,000,000 $20,000,000 $10,000,000
$10,000,000
Requirements 1. Compute the cost of goodwill purchased by .Pilgrim 2. Record the purchase of by .Kate Pilgrim
Requirement 1. Compute the cost of goodwill purchased by .Pilgrim
Purchase price to acquire Kate
Market value of Kate's assets
Less: Market value of Kate's liabilities
Less: Market value of Kate's net assets
Goodwill
Requirement 2. Record the purchase of by , Inc. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Kate Pilgrim
Date Accounts and Explanation Debit Credit
(1)
(2)
(3)
(4)
(5)
8/11/2020 Chapter 9 Homework-Tam Pham
https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 20/20
11.
(4) Assets Cash Equity
Gain on Disposal Goodwill Liabilities Loss on Disposal
Notes Payable
(5) To record gain on disposal of Kate's net assets. To record impairment loss on goodwill. To record loss on disposal of Kate's net assets.
To record purchase of Kate.
6: Data Table
(1) Average current assets Average total assets Cash
(Cash + Accounts Receivable) Net sales
(2) Average current assets Average total assets Cash
(Cash + Accounts Receivable) Net sales
Photo reported the following figures on its December 31, , income statement and balance sheet:Photo Pro 2018 (Click the icon to view the figures.)6
Compute the asset turnover ratio for . Round to two decimal places.2018
(1) / (2) = Asset turnover ratio
/ =
Net sales 461,000$
Dec. 31, 2018 Dec. 31, 2017
Cash 35,000$ 22,000$
Accounts Receivable 48,000 57,000
Merchandise Inventory 74,000 78,000
Prepaid Expenses 11,000 8,000
Property, plant, and equipment, net 130,000 19,000
