Exercises and Problems
samsunshine
week2bproblems28guidance29.docx|
PROBLEM 9-5B |
(a) Apr. 1 Land 1,200,000
Cash 1,200,000
May 1 Depreciation Expense 14,000
Accumulated Depreciation—
Equipment
($420,000 X 1/10 X 4/12) 14,000
1 Cash 240,000
Accumulated Depreciation—
Equipment 182,000
Equipment 420,000
Gain on Disposal 2,000
Cost $420,000
Accum. depreciation—
equipment 182,000
[($420,000 X 1/10 X 4) + $14,000]
Book value 238,000
Cash proceeds 240,000
Gain on disposal $ 2,000
June 1 Cash 1,000,000
Land 340,000
Gain on Disposal 660,000
July 1 Equipment 1,100,000
Cash 1,100,000
Dec. 31 Depreciation Expense 30,000
Accumulated Depreciation—
Equipment
($300,000 X 1/10) 30,000
31 Accumulated Depreciation—
Equipment 300,000
Equipment 300,000
Cost $300,000
Accum. depreciation—
equipment 300,000
($300,000 X 1/10 X 10)
Book value $ 0
(b) Dec. 31 Depreciation Expense 400,000
Accumulated Depreciation—
Buildings
($20,000,000 X 1/50) 400,000
31 Depreciation Expense 2,983,000
Accumulated Depreciation—
Equipment 2,983,000
($29,280,000* X 1/10) $2,928,000
[($1,100,000 X 1/10) X 6/12] 55,000
$2,983,000
*($30,000,000 – $420,000 – $300,000)
(c) STARKEY COMPANY
Partial Balance Sheet
December 31, 2012
Plant Assets*
Land $ 2,860,000
Buildings $20,000,000
Less: Accumulated depreciation—
buildings 8,400,000 11,600,000
Equipment 30,380,000
Less: Accumulated depreciation—
equipment 6,545,000 23,835,000
Total plant assets $38,295,000
*See T-accounts which follow.
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Land |
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Bal. 2,000,000 Apr. 1 1,200,000 |
June 1 340,000 |
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Bal. 2,860,000 |
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Buildings |
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Bal. 20,000,000 |
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Bal. 20,000,000 |
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Accumulated Depreciation—Buildings |
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|
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Bal. 8,000,000 Dec. 31 adj. 400,000 |
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Bal. 8,400,000 |
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Equipment |
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Bal. 30,000,000 July 1 1,100,000 |
May 1 420,000 Dec. 31 300,000 |
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Bal. 30,380,000 |
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Accumulated Depreciation—Equipment |
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May 1 182,000 Dec. 31 300,000 |
Bal. 4,000,000 May 1 14,000 Dec. 31 30,000 Dec. 31 adj. 2,983,000 |
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Bal. 6,545,000 |
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PROBLEM 9-6B |
(a) Accumulated Depreciation—Delivery
Equipment 26,000
Loss on Disposal 14,000
Delivery Equipment 40,000
(b) Cash 29,000
Accumulated Depreciation—Delivery
Equipment 26,000
Gain on Disposal 15,000
Delivery Equipment 40,000
(c) Cash 10,000
Accumulated Depreciation—Delivery
Equipment 26,000
Loss on Disposal 4,000
Delivery Equipment 40,000
