New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
intermediate accounting
Intermediate Accounting 17th edition Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel - Solutions
Use the information presented for Ottawa Corporation in BE10.14, but assume the machinery is sold for $5,200 instead of $10,500. Prepare journal entries to(a) Update depreciation for 2021(b) Record the sale.In BE10.14Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1,
Cardinals Corporation purchased a computer on December 31, 2019, for $105,000, paying $30,000 down and agreeing to pay the balance in five equal installments of $15,000 payable each December 31 beginning in 2020. An assumed interest rate of 10% is implicit in the purchase price.Instructions(Round
Research Science Inc. provides funding to University Hospital to perform a research study on the benefits of a new drug for insomnia. The agreement requires University Hospital to plan the study, perform the research, and summarize and submit the research to Research Science. Research Science
Hayes Industries purchased the following assets and constructed a building as well. All this was done during the current year. Assets 1 and 2: These assets were purchased as a lump sum for $100,000 cash. The following information was gathered. Asset 3: This machine was acquired by making a
Crowe Company purchased a heavy-duty truck on July 1, 2017, for $30,000. It was estimated that it would have a useful life of 10 years and then would have a trade-in value of $6,000. The company uses the straight-line method. It was traded on August 1, 2021, for a similar truck costing $42,000;
Pet Aware is an animal shelter and receives an upfront, unsolicited 2-year grant of $800,000 from Kindig Company (the owner of Kindig is a dog lover). The grant specifies that the money should be used to expand Pet Aware’s operations. The agreement indicates that Pet Aware must expand its
Knowledge University received a grant from a private foundation to conduct scientific research for purposes of discovering planets potentially habitable to humans. Knowledge University is required to submit a summary of research findings to the foundation at the end of the study, but Knowledge
Cannondale Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase.List price of new melter............................................................$15,800Cash
Donovan Resources Group has been in its plant facility for 15 years. Although the plant is quite functional, numerous repair costs are incurred to maintain it in sound working order. The company’s plant asset book value is currently $800,000, as indicated below.Original
The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no
What is the difference between a conditional and unconditional contribution?
On December 31, 2020, Tritt Inc. has a machine with a book value of $940,000. The original cost and related accumulated depreciation at this date are as follows.Machine.........................................................$1,300,000Less: Accumulated depreciation......................360,000Book
Why is the distinction between a conditional and unconditional contribution important for accounting purposes?
On April 1, 2020, Estefan Company received a condemnation award of $430,000 cash as compensation for the forced sale of the company’s land and building, which stood in the path of a new state highway. The land and building cost $60,000 and $280,000, respectively, when they were acquired. At April
Alladin Company purchased Machine #201 on May 1, 2020. The following information relating to Machine #201 was gathered at the end of May.Price.....................................................................................$85,000Credit
Burnitz Manufacturing Company was organized on January 1, 2020. During 2020, it has used in its reports to management the straight-line method of depreciating its plant assets. On November 8, you are having a conference with Burnitz?s officers to discuss the depreciation method to be used for
The financial statements of P&G are presented in Appendix B. The company’s complete annual report, including the notes to the financial statements, is available online.InstructionsRefer to P&G’s financial statements and the accompanying notes to answer the following questions.a. What
Lockard Company purchased machinery on January 1, 2020, for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years.(a) Compute 2020 depreciation expense using the straight-line method.(b) Compute 2020 depreciation expense using the straight-line method
The cost of equipment purchased by Charleston, Inc., on June 1, 2020, is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is
The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies’ complete annual reports, including the notes to the financial statements, are available online.InstructionsUse the companies’ financial information to answer the following
Use the information for Lockard Company given in BE11.2.(a) Compute 2020 depreciation expense using the sum-of-the-years’-digits method.(b) Compute 2020 depreciation expense using the sum-of-the-years’-digits method, assuming the machinery was purchased on April 1, 2020.
Judds Company purchased a new plant asset on April 1, 2020, at a cost of $711,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Judds’ accounting period is the calendar year.Instructionsa. Compute the depreciation for this asset for 2020 and 2021 using the
The following data relate to the Machinery account of Eshkol, Inc. at December 31, 2020. The following transactions occurred during 2021. a. On May 5, Machine A was sold for $13,000 cash. The company?s bookkeeper recorded this retirement in the following manner in the cash receipts
The following are three different and unrelated situations involving depreciation accounting. Answer the question(s) at the end of each situation.Situation I: Recently, Broderick Company experienced a strike that affected a number of its operating plants. The controller of this company indicated
McDonald?s is the largest and best-known global food-service retailer, with more than 32,000 restaurants in over 115 countries. On any day, McDonald?s serves approximately 1 percent of the world?s population. The following is information related to McDonald?s property and
Use the information for Lockard Company given in BE11.2.(a) Compute 2020 depreciation expense using the double-declining-balance method.(b) Compute 2020 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on October 1, 2020.
Jon Seceda Furnace Corp. purchased machinery for $315,000 on May 1, 2020. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2021, Seceda Corp. uses the machinery for 2,650 hours, and the machinery
A depreciation schedule for semi-trucks of Ichiro Manufacturing Company was requested by your auditor soon after December 31, 2021, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2018 to 2021, inclusive. The following data
As a cost accountant for San Francisco Cannery, you have been approached by Phil Perriman, canning room supervisor, about the 2020 costs charged to his department. In particular, he is concerned about the line item “depreciation.” Perriman is very proud of the excellent condition of his canning
Electroboy Enterprises, Inc. operates several stores throughout the western United States. As part of an operational and financial reporting review in a response to a downturn in its markets, the company’s management has decided to perform an impairment test on five stores (combined). The five
Tanaka Company has land that cost $15,000,000. Its fair value on December 31, 2020, is $20,000,000. Tanaka chooses the revaluation model to report its land. Explain how the land and its related valuation should be reported.
Cominsky Company purchased a machine on July 1, 2021, for $28,000. Cominsky paid $200 in title fees and county property tax of $125 on the machine. In addition, Cominsky paid $500 shipping charges for delivery, and $475 was paid to a local contractor to build and wire a platform for the machine on
Robert Parish Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $117,900. The company estimated that the machine would have a salvage value of $12,900 at the end of its service life. Its life is estimated at 5 years, and its working hours
Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2020, Bogues uses the equipment for
Conan O’Brien Logging and Lumber Company owns 3,000 acres of timberland on the north side of Mount Leno, which was purchased in 2008 at a cost of $550 per acre. In 2020, O’Brien began selectively logging this timber tract. In May 2020, Mount Leno erupted, burying the timberland of O’Brien
Ortiz purchased a piece of equipment that cost $202,000 on January 1, 2020. The equipment has the following components. Compute the depreciation expense for this equipment at December 31, 2020. Residual Value Cost Estimated Useful Life Component 10 years $70,000 50,000 82,000 $7,000 5,000 4,000 A
Holt Company purchased a computer for $8,000 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,000 salvage value. In 2021, the estimates are revised. Holt now feels the computer will be used until December 31, 2022, when it can be sold for $500. Compute the
Jackel Industries presents you with the following information. Instructions Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. Accumulated Salvage Life in Depreciation Depreciation Depreciation Date Description Purchased
Bronson Paper Products purchased 10,000 acres of forested timberland in March 2020. The company paid $1,700 per acre for this land, which was above the $800 per acre most farmers were paying for cleared land. During April, May, June, and July 2020, Bronson cut enough timber to build roads using
Workman Company purchased a machine on January 2, 2020, for $800,000. The machine has an estimated useful life of 5 years and a salvage value of $100,000. Depreciation was computed by the 150% declining-balance method. What is the amount of accumulated depreciation at the end of December 31, 2021?
Tan Chin Company purchases a building for $11,300,000 on January 2, 2020. An engineer’s report shows that of the total purchase price, $11,000,000 should be allocated to the building (with a 40-year life), $150,000 to 15-year property, and $150,000 to 5-year property. No residual (salvage) value
George Zidek Corporation bought a machine on June 1, 2018, for $31,000, f.o.b. the place of manufacture. Freight to the point where it was set up was $200, and $500 was expended to install it. The machine’s useful life was estimated at 10 years, with a salvage value of $2,500. On June 1, 2019, an
Darby Sporting Goods Inc. has been experiencing growth in the demand for its products over the last several years. The last two Olympic Games greatly increased the popularity of basketball around the world. As a result, a European sports retailing consortium entered into an agreement with Darby?s
Silverman Company purchased machinery for $162,000 on January 1, 2020. It is estimated that the machinery will have a useful life of 20 years, salvage value of $15,000, production of 84,000 units, and working hours of 42,000. During 2020, the company uses the machinery for 14,300 hours, and the
Brazil Group purchases a vehicle at a cost of $50,000 on January 2, 2020. Individual components of the vehicle and useful lives are as follows. Instructions (Assume no residual (salvage) value.) a. Compute depreciation expense for 2020, assuming Brazil depreciates the vehicle as a single unit. b.
Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $10,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2020, new technology was introduced that would accelerate the obsolescence of
In its 2017 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $7,837 million, end-of-the-year total assets of $7,726 million, total sales of $7,890 million, and net income of $887 million.(a) Compute Campbell’s asset turnover.(b) Compute Campbell’s profit margin
Five Satins Company purchased a piece of equipment at the beginning of 2017. The equipment cost $430,000. It has an estimated service life of 8 years and an expected salvage value of $70,000. The sum-of-the-years’-digits method of depreciation is being used. Someone has already correctly prepared
Kohlbeck Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of Kohlbeck has started the fixed-asset and depreciation schedule presented as follows. You have been asked to assist in completing this schedule. In addition to ascertaining
Presented below is information related to equipment owned by Pujols Company at December 31, 2020.Cost (residual value $0)..............................$9,000,000Accumulated depreciation to date..............1,000,000Value-in-use...................................................5,500,000Fair value
Machinery purchased for $60,000 by Tom Brady Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,000 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years
On January 1, 2018, a machine was purchased for $90,000. The machine has an estimated salvage value of $6,000 and an estimated useful life of 5 years. The machine can operate for 100,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as
Assume the same information as in IFRS11.11, except that Pujols intends to dispose of the equipment in the coming year.Cost (residual value $0)..............................$9,000,000Accumulated depreciation to
In 1993, Herman Moore Company completed the construction of a building at a cost of $2,000,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $60,000 at the end of that time.Early in 2004, an addition to the
On January 1, 2019, Locke Company, a small machine-tool manufacturer, acquired for $1,260,000 a piece of new industrial equipment. The new equipment had a useful life of 5 years, and the salvage value was estimated to be $60,000. Locke estimates that the new equipment can produce 12,000 machine
A building that was purchased on December 31, 2006, for $2,500,000 was originally estimated to have a life of 50 years with no salvage value at the end of that time. Depreciation has been recorded through 2020. During 2021, an examination of the building by an engineering firm discloses that its
Falcetto Company acquired equipment on January 1, 2019, for $12,000. Falcetto elects to value this class of equipment using revaluation accounting. This equipment is being depreciated on a straight-line basis over its 6-year useful life. There is no residual value at the end of the 6-year period.
Greg Maddox Company constructed a building at a cost of $2,200,000 and occupied it beginning in January 2001. It was estimated at that time that its life would be 40 years, with no salvage value. In January 2021, a new roof was installed at a cost of $300,000, and it was estimated then that the
Companies following international accounting standards are permitted to revalue fixed assets above the assets? historical costs. Such revaluations are allowed under various countries? standards and the standards issued by the IASB. Liberty International, a real estate company headquartered in the
Mike Devereaux Company shows the following entries in its Equipment account for 2021. All amounts are based on historical cost. Instructions a. Prepare any correcting entries necessary. b. Assuming that depreciation is to be charged for a full year on the ending balance in the asset account,
Andrea Kremer purchased a computer for $8,000 on July 1, 2020. She intends to depreciate it over 4 years using the double-declining balance method. Salvage value is $1,000. Compute depreciation for 2021.
On March 10, 2022, Lost World Company sells equipment that it purchased for $192,000 on August 20, 2015. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $16,800 at the end of that time, and depreciation has been computed on that basis. The company
The financial statements of M&S are presented in Appendix E. The company’s complete annual report, including the notes to the financial statements, is available online.InstructionsRefer to M&S’s financial statements and the accompanying notes to answer the following questions.a. What
Presented below is information related to equipment owned by Suarez Company at December 31, 2020.Cost.........................................................$9,000,000Accumulated depreciation to date........1,000,000Expected future net cash flows.............7,000,000Fair
Last year, Wyeth Company recorded an impairment on an asset held for use. Recent appraisals indicate that the asset has increased in value. Should Wyeth record this recovery in value under GAAP?
Assume the same information as E11.16, except that Suarez intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $20,000.Cost.........................................................$9,000,000Accumulated depreciation to date........1,000,000Expected
The management of Petro Garcia Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of $900,000 with depreciation to date of $400,000 as of December 31, 2020. On December 31, 2020, management
Stanislaw Timber Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,400 per acre. At the time of purchase, the land without the timber was valued at $400 per acre. In 2010, Stanislaw built fire lanes and roads, with a life of 30 years, at a cost of $84,000. Every year,
Forda Lumber Company owns a 7,000-acre tract of timber purchased in 2006 at a cost of $1,300 per acre. At the time of purchase, the land was estimated to have a value of $300 per acre without the timber. Forda Lumber Company has not logged this tract since it was purchased. In 2020, Forda had the
Alcide Mining Company purchased land on February 1, 2020, at a cost of $1,190,000. It estimated that a total of 60,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of
At the beginning of 2020, Aristotle Company acquired a mine for $970,000. Of this amount, $100,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 12,000,000 units of ore appear to be in the
The 2017 annual report of Tootsie Roll Industries contains the following information. Instructions Compute the following ratios for Tootsie Roll for 2017. a. Asset turnover. b. Return on assets. c. Profit margin on sales. d. How can the asset turnover be used to compute the return on assets?
Futabatei Enterprises purchased a delivery truck on January 1, 2020, at a cost of $27,000. The truck has a useful life of 7 years with an estimated salvage value of $6,000. The straight-line method is used for book purposes. For tax purposes, the truck, having an MACRS class life of 7 years, is
Shimei Inc. purchased computer equipment on March 1, 2020, for $31,000. The computer equipment has a useful life of 10 years and a salvage value of $1,000. For tax purposes, the MACRS class life is 5 years.Instructionsa. Assuming that the company uses the straight-line method for book and tax
Fernandez Corporation purchased a truck at the beginning of 2020 for $50,000. The truck is estimated to have a salvage value of $2,000 and a useful life of 160,000 miles. It was driven 23,000 miles in 2020 and 31,000 miles in 2021. Compute depreciation expense using the units-of-production method
Target in 2017 reported net income of $2,934 billion, net sales of $71,879 billion, and average total assets of $38,215 billion. What is Target’s asset turnover? What is Target’s return on assets?
On January 1, 2020, Lombard Co. sells property for which it had paid $690,000 to Sargent Company, receiving in return Sargent’s zero-interest-bearing note for $1,000,000 payable in 5 years. What entry would Lombard make to record the sale, assuming that Lombard frequently sells similar items of
Jim Carrie Company shows a balance of $181,140 in the Accounts Receivable account on December 31, 2020. The balance consists of the following.Installment accounts due in 2021..........................................$23,000Installment accounts due after
Francis Equipment Co. closes its books regularly on December 31, but at the end of 2020 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions.
The controller for Clint Eastwood Co. is attempting to determine the amount of cash to be reported on its December 31, 2020, balance sheet. The following information is provided.1. Commercial savings account of $600,000 and a commercial checking account balance of $900,000 are held at First
Kraft Enterprises owns the following assets at December 31, 2020.Cash in bank—savings account...............................68,000Checking account balance........................................17,000Cash on hand...............................................................9,300Postdated
For each of the following, determine the expected cash flows. Probability Cash Flow Estimate Assessment $ 4,800 20% a. 50% 6,300 7,500 30% $ 5,400 b. 30% 7,200 50% 8,400 20% $(1,000) 10% c. 3,000 80% 5,000 10%
The comparative balance sheets of Madrasah Corporation at the beginning and end of the year 2020 appear below. Net income of $44,000 was reported, and dividends of $33,000 were paid in 2020. New equipment was purchased and none was sold. Instructions a. Prepare a statement of cash flows for the
Crane Corporation has the following accounts included in its December 31, 2020, trial balance: Equity Investments (to be sold in the next 6 months) $21,000, Goodwill $150,000, Prepaid Insurance $12,000, Patents $220,000, and Franchises $130,000. Prepare the intangible assets section of the balance
Portman Corporation has retained earnings of $675,000 at January 1, 2020. Net income during 2020 was $1,400,000, and cash dividends declared and paid during 2020 totaled $75,000. Prepare a retained earnings statement for the year ended December 31, 2020.
The stockholders’ equity section of Hendly Corporation appears below as of December 31, 2020.8% preferred stock, $50 par value, authorized100,000 shares, outstanding 90,000 shares..................................................$ 4,500,000Common stock, $1.00 par, authorized and issued 10 million
C. Reither Co. reports the following information for 2020: sales revenue $700,000, cost of goods sold $500,000, operating expenses $80,000, and an unrealized holding loss on available-for-sale debt securities for 2020 of $60,000. It declared and paid a cash dividend of $10,000 in 2020.C. Reither
Harding Corporation has the following accounts included in its December 31, 2020, trial balance: Accounts Receivable $110,000, Inventory $290,000, Allowance for Doubtful Accounts $8,000, Patents $72,000, Prepaid Insurance $9,500, Accounts Payable $77,000, and Cash $30,000. Prepare the current
In an examination of Arenes Corporation as of December 31, 2020, you have learned that the following situations exist. No entries have been made in the accounting records for these items.1. The corporation erected its present factory building in 2004. Depreciation was calculated by the
The Procter & Gamble Company (P&G) The financial statements of P&G are presented in Appendix B. The company’s complete annual report, including the notes to the financial statements, is available online. InstructionsRefer to P&G’s financial statements and the related
Koch Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2020: Cash $7,000, Land $40,000, Patents $12,500, Accounts Receivable $90,000, Prepaid Insurance $5,200, Inventory $30,000, Allowance for Doubtful Accounts $4,000, and Equity Investments (to be sold
Presented below are a number of balance sheet items for Montoya, Inc. for the current year, 2020. Instructions Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes
The assets of Fonzarelli Corporation are presented below (000s omitted). Instructions Indicate the deficiencies, if any, in the foregoing presentation of Fonzarelli Corporation?s assets. Fonzarelli Corporation Balance Sheet (partial) December 31, 2020 Assets Current assets $ 100,000 Cash
The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies’ complete annual reports, including the notes to the financial statements, are available online.InstructionsUse the companies’ financial information to answer the following
Included in Outkast Company’s December 31, 2020, trial balance are the following accounts: Prepaid Rent $5,200, Debt Investments (to be held to maturity until 2023) $56,000, Unearned Fees $17,000, Land (held for investment) $39,000, and Notes Receivable (long-term) $42,000. Prepare the long-term
The adjusted trial balance of Eastwood Company and other related information for the year 2020 are presented as follows. Additional information: 1. The LIFO method of inventory value is used. 2. The cost and fair value of the long-term investments that consist of stocks (with ownership less
The following is the balance sheet of Sameed Brothers Corporation (000s omitted). Instructions Evaluate the balance sheet presented. State briefly the proper treatment of any item criticized. Sameed Brothers Corporation Balance Sheet December 31, 2020 Assets Current assets Cash $26,000
Rainmaker Company prepares its financial statements in accordance with IFRS. In 2020, Rainmaker recorded the following revaluation adjustments related to its buildings and land: The company’s building increased in value by $200,000; its land declined by $35,000. How will these revaluation
Lowell Company’s December 31, 2020, trial balance includes the following accounts: Inventory $120,000, Buildings $207,000, Accumulated Depreciation—Equipment $19,000, Equipment $190,000, Land (held for investment) $46,000, Accumulated Depreciation—Buildings $45,000, Land $71,000, and
The balance sheet of Kishwaukee Corporation as of December 31, 2020, is as follows. Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $570,000. Depreciation has been recorded based on cost. Note 2:
Showing 3800 - 3900
of 6751
First
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Last
Step by Step Answers
Get 50% OFF
Claim Now
