Chapter on the lookout for Practice Complications

﻿Chapter being unfaithful Practice Problems

S9-2.

Asset

Market

Value

Percentage of Total Value

× Total

Purchase

Price

= Assigned Cost of Each Asset

Property

\$ 70, 000

\$80, 000 as well as \$160, 500 = 50%

× \$150, 000

sama dengan \$ 75, 000

Building

60, 500

\$60, 500 / \$160, 000 = 38%

× \$150, 1000

= 57, 000

Gear

20, 500

\$20, 500 / \$160, 000 sama dengan 12%

× \$150, 500

= 18, 000

Total

\$ one hundred sixty, 000

completely

\$ 150, 500

Date

Accounts and Explanation

Debit

Credit

Land

75, 000

Building

57, 500

Equipment

18, 000

Records Payable

a hundred and fifty, 000

To record purchase of land, building, and products in exchange pertaining to note payable.

S9-4.

Need 1

a.

Straight-line

=

(Cost − Left over value) / Useful lifestyle

=

(\$35, 000, 500 ̶ \$5, 000, 000) / 5 years

=

\$6, 1000, 000 annually

b.

=

(Cost – Recurring value) as well as Useful existence in products

=

(\$35, 000, 000 ̶ \$5, 000, 000) / 6th, 000, 1000 miles

sama dengan

\$5 per mile

Units-of-production

=

Depreciation per device × Current year use

=

\$5 per mile × one particular, 000, 500 miles

=

\$5, 1000, 000 for year one particular

c.

Double-declining-balance

=

(Cost – Accrued depreciation) × 2 × (1 as well as Useful life)

=

(\$35, 000, 500 ̶ \$0) × two × (1/ 5 years)

=

\$14, 000, 500 for year 1

S9-5.

a.

Straight-line

=

(Cost − Recurring value) / Useful existence

=

(\$35, 000, 1000 ̶ \$5, 000, 000) / 5 years

sama dengan

\$6, 500, 000 per year, second year = \$6, 000, 000

b.

=

(Cost – Left over value) / Useful lifestyle in units

=

(\$35, 000, 500 ̶ \$5, 000, 000) / 6th, 000, 1000 miles

sama dengan

\$5 every mile

Units-of-production

=

Devaluation per product × Current year consumption

=

\$5 per mile × 1, 500, 1000 miles

=

\$7, 500, 000 in year two

c.

Double-declining-balance

=

(Cost – Built up depreciation) × 2 × (1 as well as Useful life)

=

(\$35, 000, 000 ̶ \$0) × two × (1/ 5 years)

=

\$14, 000, 1000 in 12 months 1

=

(Cost – Accumulated depreciation) × two × (1 / Useful life)

=

(\$35, 1000, 000 ̶ \$14, 500, 000) × 2 × (1/ a few years)

sama dengan

\$8, four hundred, 000 in year 2

S9-7.

Straight-line

=

(Cost − Residual value) as well as Useful life

=

(\$80, 500 ̶ \$8, 000) /5 years

=

\$14, 400 annually

S9-8.

Straight-line

=

(Cost − Residual value) / Useful life

=

(\$50, 000 ̶ \$0) / 10 years

=

\$5, 1000 per year

Gathered depreciation after 4 years

=

\$5, 000 annually × 4 years

sama dengan

\$20, 000

Book benefit after 6 years

=

(Cost – Gathered Depreciation)

=

\$50, 500 ̶ 20 dollars, 000

sama dengan

\$30, 500

Revised depreciation

=

(Book value − Revised residual value) as well as Revised beneficial life remaining

=

(\$30, 000 ̶ \$0) as well as 2 years

=

\$15, 000 annually

Date

Accounts and Description

Debit

Credit

End of

Depreciation Expense—Equipment

12-15, 000

Yr 5

Built up Depreciation—Equip.

12-15, 000

To record depreciation on tools.

S9-9.

Their market value of possessions received

bucks 28, 500

Less: Book value of asset disposed of

Cost

money 41, 1000

Less: Built up Depreciation

(20, 000)

21 years old, 000

Gain or (Loss)

\$ several, 000

Date

Accounts and Reason

Debit

Credit

Dec. thirty-one

Cash

twenty-eight, 000

Accumulated Depreciation—Equipment

twenty, 000

Gear

41, 500

Gain in Disposal

several, 000

Offered equipment for cash.

S9-11.

Requirement 1 )

Units-of-production is a method used to compute depletion.

Requirement installment payments on your

Depletion per unit

=

(Cost – Residual value) / Predicted total units

=

(\$24, 000, 500, 000 ̶ \$0) as well as 2, 4 hundred, 000, 500 barrels

=

\$10 per barrel

Exhaustion expense

sama dengan

Depletion per unit × Number of devices extracted

sama dengan

\$10 per barrel × 500, 500, 000 barrels

=

\$5, 000, 500, 000

Date

Accounts and Explanation

Charge

Credit

December. 31

Destruction Expense—Oil

five, 000, 1000, 000

Accrued Depletion—Oil

a few, 000, 500, 000

To record depletion.

S9-12.

Requirement 1 ....