HW $=14$

Problem $1$

Isley Construction negotiabes a lump$-$sum purchase of severnl assets hom a compary that a poing out of business. The purchase is completed on $\frac{1}{7},2011,$ as a total cash price of $$787,500.$ The estimated value of the building is $$408,000,$ land, $$289,000,$ land improvements $$42,500,$ and $4$ vehicles, $$110\mathrm{.}500.$

Instructions:

Prepare a table to allocabe the lump$-$sum purchase to the separabe assets purchased $($round to the nearest $144).$ Prepare the joumal entry to record the purchase

Asert

EMV

Wet Cons:

Asty Vales

$q,$

$q,$

$q,$

$q,$

$q,$

$\backslash$table$[[$Date$,$Account,Debi,Credt$],[,,,],[,,,],[,,,],[,,,]]$

Problem $2$

Wade Ca$.$ negotiates a lump$-$sum purchase of several assets from a company that is relocating The purchase is completed on $\frac{1}{1}\frac{?}{2011},$ as a total cash price of $$1,610,000.$ The estimated value of the bulding is $$784,800$; land, $$540,640$; land improvements $$226,720$; and $6$ trucks $$191,840.$ Instructions:

Prepare a table to allocate the lump$-$sum purchase to the separate assets purchased $($round to the nearest $1\%).$ Prepare the journal entry to record the purchase

Asset

EMY

K of Cost

ActyValat

$q,$

$q,$

$q,$

$q,$

$q,$

$\backslash$table$[[$Date$,$Account,Debit,Credt$],[,,,],[,,,],[,,,],[,,,]]$

HW

Problem $3$A

Keller Co$.$ purchased a delivery truck for $$34,000$ on $\frac{1}{1}\frac{?}{2014}.$ The truck has an expected salvage value of $$2,000,$ and is expected to be driven $100,000$ miles over its $8$ year expected useful life. Actual miles driven were $15,000$ in $2014$ and $12,000$ in $2015.$ Compute depreciation for $2014$ and $2015$ for each of the following:

a straight$-$line method

b units$-$of$-$production method

c double$-$declining balance

Prepare journal entries each year.

$\backslash$table$[[$Date$,$Account,Debit,Credit$],[2014,,,],[$a$,,,],[,,,],[,,,],[,,,],[$b$,,,],[,,,],[,,,],[,,,],[2015,,,],[3,,,],[,,,],[,,,],[,,,],[$b$,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

HW ${?}^{-1}14$

Problem $38-$ Assumes the same data as Problem $3,$ truck installed on $4/1/2014.$

Keller Co$.$ purchased a delivery truck for $$34,000$ on $\frac{4}{1}\frac{?}{2014}.$ The truck has an expected salvage value of $$2,000,$ and is expected to be driven $100,000$ miles over its $8$ year expected useful life. Actual miles driven were $15,000$ in $2014$ and $12,000$ in $2015.$ Compute depreciation for $2014$ and $2015$ for each of the following:

a straight$-$line method

b units$-$of$-$production method

c double$-$declining balance

Prepare journal entries each year.

$\backslash$table$[[$Date$,$Account,Debit,Credt$],[2014,,,],[$a$,,,],[,,,],[,,,],[,,,],[$b$,,,],[,,,],[,,,],[,,,],[,,,],[2015,,,],[$a$,,,],[,,,],[,,,],[,,,],[$b$,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

HW $=14$

Problem $4$

Wade Co$.$ pays $$350,000$ for equipment expected to last $7$ years and have a $545,000$ salvage value. Prepare journal entries to record the following costs related to the equipment.

$1$ During the third year of the equipment's life, $$35,000$ cash is paid for a new component expected to increase the equipment's productivity by $20\%$ each year.

$2$ During the fourth year, $57,250$ cash is paid for normal repairs necessary to ketp the equipment in good condition.

$3$ During the fourth year, $$15,750$ is paid for repairs expected to increase the useful life of the equipment from $7$ to $8$ years.

$\backslash$table$[[$Date$,$Account,Debt,Credt$],[1,,,],[,,,],[,,,],[2,,,],[,,,],[3,,,],[,,,]]$

Problem $5$

Silva Co$.$ owns a machine that cost $$250,000$ and has accumulated depreciation of $$202,500.$ Record a journal entry to dispose of the machine on lan. $5$

under each of the following situations.

$1$ Sold the machine for $$25,000$ cash

$2$ Sold the machine for $$47,500$ cash

$3$ Sold the machine for $$$8,300$ cash

$4$ Scrapped the machine

$\backslash$table$[[$Date$,$Account,Debt,Credit$],[1,,,],[,,,],[,,,],[,,,],[2,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

Problem $6$

Rock Co$.$ acquired a gravel pit on July $1,$ Yr $1$ for $$600,000.$ Estimabed ite is $25$ yoars weth a r