ACC 291 Week 2: E8-3, BE9-13, 9-4, E9-9, E9-10 and P9-5Aby ACCNerd $4.99
Updates: Updated for 2012-2013 Academic Year. WileyPLUS Answer Guide.
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Format: Microsoft Excel
Textbook: Financial Accounting, Seventh Edition
Information related to plant assets, natural resources, and intangibles at the end of 2011 for Spain Company is as follows: buildings $1,100,000; accumulated depreciation—buildings $650,000; goodwill $410,000; coal mine $500,000; accumulated depletion—coal mine $108,000. Prepare a partial balance sheet of Spain Company for these items.
Classify long-lived assets on balance sheet.
Do It 9-4
Match the statement with the term most directly associated with it.
- Intangible assets
- Research and development costs
- ______ Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance.
- ______ The allocation of the cost of an intangible asset to expense in a rational and systematic manner.
- ______ A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area.
- ______ Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred.
- ______ The excess of the cost of a company over the fair market value of the net assets acquired.
Match intangibles classifications concepts.
Presented below are selected transactions at Ingles Company for 2011.
|Jan.||1||Retired a piece of machinery that was purchased on January 1, 2001. 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, 2008. The computer cost $40,000. 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, 2007. The truck cost $39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.|
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ingles Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2010.)
Beka Company owns equipment that cost $50,000 when purchased on January 1, 2008. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated useful life of 5 years.
Prepare Beka Company’s journal entries to record the sale of the equipment in these four independent situations.
- Sold for $28,000 on January 1, 2011.
- Sold for $28,000 on May 1, 2011.
- Sold for $11,000 on January 1, 2011.
- Sold for $11,000 on October 1, 2011.
Journalize entries for disposal of equipment.
At December 31, 2011, Jimenez Company reported the following as plant assets.
|Less: Accumulated depreciation—buildings||12,100,000||16,400,000|
|Less: Accumulated depreciation—equipment||5,000,000||43,000,000|
|Total plant assets||$63,400,000|
During 2012, the following selected cash transactions occurred.
|April||1||Purchased land for $2,130,000.|
|May||1||Sold equipment that cost $780,000 when purchased on January 1, 2008. The equipment was sold for $450,000.|
|June||1||Sold land purchased on June 1, 2002 for $1,500,000. The land cost $400,000.|
|July||1||Purchased equipment for $2,000,000.|
|Dec.||31||Retired equipment that cost $500,000 when purchased on December 31, 2002. No salvage value was received.|
Journalize a series of equipment transactions related to purchase, sale, retirement, and depreciation.
(SO 3, 6, 9)
- Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year 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 adjusting entries for depreciation for 2012.(b) Depreciation Expense—building $570,000; equipment $4,772,000
- Prepare the plant assets section of Jimenez’s balance sheet at December 31, 2012.(c) Total plant assets $61,270,000