AccountingGenius
betterdays
financial_accounting_week_7__8.docxApplication Problems
Completing them will help you understand the concepts in this lesson.
· Exercise 9-8A on page. 509
· Exercise 9-10A on page. 510
· Exercises 10-6A through 10-8A on page. 564
· Exercises 10-4A and 10-5A on page. 563-564
· Exercises 10-22A through 10-24A on page. 568
Plus Answer these 5 questions.
1. After the accounts are adjusted at the end of the year, Accounts Receivable has a balance of $215,000, Uncollectible Accounts Expense has a balance of $17,500, and Allowance for Doubtful Accounts has a balance of $12,500. What is the net realizable value of the accounts receivable?
2. Explain the meaning of the terms "tangible" and "intangible" and discuss how these terms are used in describing assets.
3. Discuss the advantages of establishing a line of credit.
4. Robin Corporation accepted credit cards for $34,200 of services performed in October 2011.The credit card company charged a 3% service fee and paid Robin as soon as it received the credit card receipts. a) Prepare the general journal entry to record performance of the services.b) Prepare the general journal entry for collection of the receivable from the credit card company.
5. In January 2011, Rogers Co. purchased a machine that cost $85,000. The equipment is estimated to have a 5-year life and a salvage value of $15,000. a) Compute the amount of depreciation expense for 2011 and 2012 using the double declining balance method.b) Compute the amount of MACRS depreciation for the above equipment for 2011 assuming the property is 5 year property and the MACRS percentage is 20%.
