BE 10-3

Bramble Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $15,392. All sales are subject to a 4% sales tax.

E9-16

Kingbirds Delivery Company and Overlands Express Delivery exchanged delivery trucks on January 1, 2019. Kingbirds truck cost $22,500. It has accumulated depreciation of $15,500 and a fair value of $2,800. Overlands truck cost $11,500. It has accumulated depreciation of $9,200 and a fair value of $2,800. The transaction has commercial substance.

(two more slots for two more accounts on the bottom one that were cut off from photo)

CT 9-7

Turner Container Company is suffering declining sales of its principal product, nonbiodegradeable plastic cartons. The president, Robert Griffin, instructs his controller, Alexis Landrum, to lengthen asset lives to reduce depreciation expense. A processing line of automated plastic extruding equipment, purchased for $3.5 million in January 2019, was originally estimated to have a useful life of 8 years and a salvage value of $300,000. Depreciation has been recorded for 2 years on that basis. Robert wants the estimated life changed to 12 years total, and the straight-line method continued. Alexis is hesitant to make the change, believing it is unethical to increase net income in this manner. Robert says, Hey, the life is only an estimate, and Ive heard that our competition uses a 12-year life on their production equipment. (a) Who are the stakeholders in this situation?

Brief Exercise 10-3 Bramble Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $15,392. All sales are subject to a 4% sales tax. Compute sales taxes payable. sales taxes payable SHOW LIST OF ACCOUNTS Make the entry to record sales taxes payable and sales revenue. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 16 SHOW LIST OF ACCOUNTS