Star Inc.'s property, plant and equipment subledger at January 1, 2014 appeared as follows: Cost Information...
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Star Inc.'s property, plant and equipment subledger at January 1, 2014 appeared as follows: Cost Information Amort. Description Purchase Date Units Method Cost Residual Life Furniture July 2, 2010 S/L 95,700 17,700 Boats September 2, 2013 DDB 78,000 16,800 Trucks January 2, 2012 362,800 10,000 Machinery January 2, 2012 Building March 2, 2013 Patents May 2, 2010 Equipment July 1, 2014 S/L 50,500 8,500 96,000 38,600 Building July 1, 2014 DDB S/L DDB DDB 204,000 29,419 25,581 0 5,000 2,000 5 years 5 years 1,176,000 km 5 years 5 years 10 years 4 years 5 years Depreciation/Amortization Accum. Balance Expense for Accum. Balance Dec. 31, 2013 2014 Dec. 31, 2014 Additional information: Star Inc. calculates depreciation and amortization to the nearest month. S/L = Straight Line; DDB = Double-Declining Balance; Units = Units of Production . . There have been no disposals, revisions, or impairments prior to January 1, 2014 • Actual kilometers driven by the trucks: 2012 - 419,000; 2013- 366,000; 2014 - 170,000 . At the beginning of 2014, it was determined that the machinery would be used for 1 year less than originally estimated. • Used equipment and building were purchased on July 1, 2014, for a total of $55,000 at a bankruptcy sale. The appraised value of the equipment was $46,000 and of the building $40,000. The old building was given to a charitable organization on July 4, 2014. . The estimated useful lives and residual values of the July 1 purchases were 4 years and $5,000 for the equipment, and 5 years and $2,000 for the building. These assets will be depreciated using the DDB method. Complete the PPE asset subledger; round depreciation per unit of production to the nearest cent; round your final answers to the nearest dollar. Using the information from the PPE asset subledger and the following December 31, 2014 adjusted account balances, complete the income statement (showing all depreciation and amortization expenses together under expenses) and a statement of changes in equity for the year ended December 31, 2014 along with the December 31, 2014 classified balance sheet. Assume that the corporation issued $81,400 worth of shares during 2014. Bonds payable Cash Account Commissions earned Consulting revenue earned Dividends Income taxes expense Interest earned Interest payable Land Long-term notes payable Long-term investment in shares Loss on sale/disposal Notes receivable Rent payable Rent receivable Retained earnings Share capital Balance 100,100 14,800 115,000 83,200 53,500 37,600 62,700 36,100 65,200 194,300 75,700 51,200 99,100 130,500 94,700 130,500 106,100 Revenues Star Inc. Income Statement For Year Ended December 31, 2014 Commissions Earned Consulting Revenue Earned Interest Earned Total revenues Expenses Loss on Sale/Disposal Depreciation/Amortization Total expenses Income before tax Income taxes expense. Net income XXX +++ (select one) Statement of Changes in Equity (select one) (select one) Balance Sheet (select one) Share Retained Total Capital Earnings Equity Categories: All Assets Liabilities Equity Equity Revenues Expenses Other Headings & Totals Choose an Account or Heading Accounts and Headings: Accounts payable Accounts receivable A Accumulated amortization, copyright Accumulated amortization, patents Accumulated amortization, trademark Accumulated depreciation, automobiles Accumulated depreciation, boats Accumulated depreciation, building Accumulated depreciation, equipment Accumulated depreciation, furniture Accumulated depreciation, land improvements Accumulated depreciation, machinery Accumulated depreciation, trucks Advertising expense Advertising payable Allowance for doubtful accounts Amortization expense, copyright Amortization expense, patents Search: Erase Cancel Categories: All Assets Liabilities Equity Equity Revenues Expenses Other Headings & Totals Choose an Account or Heading Accounts and Headings: Amortization expense, patents Assets Automobiles Balance, December 31 Balance, January 1 Boats Bonds payable Building Cash Commissions earned Consulting revenue earned Copyright Cost of goods sold Current assets Current liabilities Delivery expense Depreciation expense Depreciation expense automobiles Search: Erase Cancel Categories: all Assets iabilities Equity Equity Revenues Expenses Other Headings & Totals Choose an Account or Heading Accounts and Headings: A Depreciation expense, automobiles Depreciation expense, boats Depreciation expense, building Depreciation expense, equipment Depreciation expense, furniture Depreciation expense, land improvements Depreciation expense, machinery Depreciation expense, trucks Dividends Equipment Equity Expenses Furniture Gain on exchange Gain on sale/disposal Income summary Income taxes expense Search: Erase Cancel 4 ategories: sets abilities quity Equity Revenues Expenses Other eadings & Totals Choose an Account or Heading Accounts and Headings: Income summary Income taxes expense Income taxes payable Insurance expense Intangible assets Interest earned Interest expense Interest payable Interest receivable Investment in bonds Issuance of shares Land Land improvements Liabilities Long-term investment in shares Long-term investments Long-term liabilities Long-term notes pavable Search: tegories: sets bilities uity quity Levenues xpenses other eadings & Totals Choose an Account or Heading Accounts and Headings: Long-term notes payable Loss on exchange Loss on sale/disposal Machinery Merchandise inventory Mortgage payable Net income Net loss Notes receivable Office salaries expense Office supplies expense Patents Prepaid advertising Prepaid insurance Prepaid interest Prepaid rent Property taxes expense Property taxes payable Search: Erase Cancel Categories: All assets Liabilities Equity Equity Revenues Expenses Other Headings & Totals Choose an Account or Heading Accounts and Headings: Property taxes payable Property, plant and equipment Rent earned Rent expense Rent expense, office space Rent expense, selling space Rent payable Rent receivable Repair expense Retained earnings Revenues Salaries expense Salaries payable Sales Sales discounts Sales returns and allowances Sales salaries expense Share capital Search: Erase Cancel ategories: II ssets abilities quity Equity Revenues Expenses Other eadings & Totals Choose an Account or Heading Accounts and Headings: Share capital Short-term notes payable Store supplies expense Supplies Supplies expense A Total assets Total current assets Total current liabilities Total equity Total expenses Total intangible assets Total liabilities Total liabilities and equity Total long-term investments Total long-term liabilities Total property, plant and equipment Total revenues Trademark Search: Categories: All Assets Liabilities Equity Equity Revenues Expenses Other Headings & Totals Choose an Account or Heading Accounts and Headings: Total assets Total current assets Total current liabilities Total equity Total expenses Total intangible assets Total liabilities Total liabilities and equity Total long-term investments Total long-term liabilities Total property, plant and equipment Total revenues Trademark Trucks Unearned consulting revenue Unearned rent Unearned revenue -Utilities expense Search: Erase Cancel D Star Inc.'s property, plant and equipment subledger at January 1, 2014 appeared as follows: Cost Information Amort. Description Purchase Date Units Method Cost Residual Life Furniture July 2, 2010 S/L 95,700 17,700 Boats September 2, 2013 DDB 78,000 16,800 Trucks January 2, 2012 362,800 10,000 Machinery January 2, 2012 Building March 2, 2013 Patents May 2, 2010 Equipment July 1, 2014 S/L 50,500 8,500 96,000 38,600 Building July 1, 2014 DDB S/L DDB DDB 204,000 29,419 25,581 0 5,000 2,000 5 years 5 years 1,176,000 km 5 years 5 years 10 years 4 years 5 years Depreciation/Amortization Accum. Balance Expense for Accum. Balance Dec. 31, 2013 2014 Dec. 31, 2014 Additional information: Star Inc. calculates depreciation and amortization to the nearest month. S/L = Straight Line; DDB = Double-Declining Balance; Units = Units of Production . . There have been no disposals, revisions, or impairments prior to January 1, 2014 • Actual kilometers driven by the trucks: 2012 - 419,000; 2013- 366,000; 2014 - 170,000 . At the beginning of 2014, it was determined that the machinery would be used for 1 year less than originally estimated. • Used equipment and building were purchased on July 1, 2014, for a total of $55,000 at a bankruptcy sale. The appraised value of the equipment was $46,000 and of the building $40,000. The old building was given to a charitable organization on July 4, 2014. . The estimated useful lives and residual values of the July 1 purchases were 4 years and $5,000 for the equipment, and 5 years and $2,000 for the building. These assets will be depreciated using the DDB method. Complete the PPE asset subledger; round depreciation per unit of production to the nearest cent; round your final answers to the nearest dollar. Using the information from the PPE asset subledger and the following December 31, 2014 adjusted account balances, complete the income statement (showing all depreciation and amortization expenses together under expenses) and a statement of changes in equity for the year ended December 31, 2014 along with the December 31, 2014 classified balance sheet. Assume that the corporation issued $81,400 worth of shares during 2014. Bonds payable Cash Account Commissions earned Consulting revenue earned Dividends Income taxes expense Interest earned Interest payable Land Long-term notes payable Long-term investment in shares Loss on sale/disposal Notes receivable Rent payable Rent receivable Retained earnings Share capital Balance 100,100 14,800 115,000 83,200 53,500 37,600 62,700 36,100 65,200 194,300 75,700 51,200 99,100 130,500 94,700 130,500 106,100 Revenues Star Inc. Income Statement For Year Ended December 31, 2014 Commissions Earned Consulting Revenue Earned Interest Earned Total revenues Expenses Loss on Sale/Disposal Depreciation/Amortization Total expenses Income before tax Income taxes expense. Net income XXX +++ (select one) Statement of Changes in Equity (select one) (select one) Balance Sheet (select one) Share Retained Total Capital Earnings Equity Categories: All Assets Liabilities Equity Equity Revenues Expenses Other Headings & Totals Choose an Account or Heading Accounts and Headings: Accounts payable Accounts receivable A Accumulated amortization, copyright Accumulated amortization, patents Accumulated amortization, trademark Accumulated depreciation, automobiles Accumulated depreciation, boats Accumulated depreciation, building Accumulated depreciation, equipment Accumulated depreciation, furniture Accumulated depreciation, land improvements Accumulated depreciation, machinery Accumulated depreciation, trucks Advertising expense Advertising payable Allowance for doubtful accounts Amortization expense, copyright Amortization expense, patents Search: Erase Cancel Categories: All Assets Liabilities Equity Equity Revenues Expenses Other Headings & Totals Choose an Account or Heading Accounts and Headings: Amortization expense, patents Assets Automobiles Balance, December 31 Balance, January 1 Boats Bonds payable Building Cash Commissions earned Consulting revenue earned Copyright Cost of goods sold Current assets Current liabilities Delivery expense Depreciation expense Depreciation expense automobiles Search: Erase Cancel Categories: all Assets iabilities Equity Equity Revenues Expenses Other Headings & Totals Choose an Account or Heading Accounts and Headings: A Depreciation expense, automobiles Depreciation expense, boats Depreciation expense, building Depreciation expense, equipment Depreciation expense, furniture Depreciation expense, land improvements Depreciation expense, machinery Depreciation expense, trucks Dividends Equipment Equity Expenses Furniture Gain on exchange Gain on sale/disposal Income summary Income taxes expense Search: Erase Cancel 4 ategories: sets abilities quity Equity Revenues Expenses Other eadings & Totals Choose an Account or Heading Accounts and Headings: Income summary Income taxes expense Income taxes payable Insurance expense Intangible assets Interest earned Interest expense Interest payable Interest receivable Investment in bonds Issuance of shares Land Land improvements Liabilities Long-term investment in shares Long-term investments Long-term liabilities Long-term notes pavable Search: tegories: sets bilities uity quity Levenues xpenses other eadings & Totals Choose an Account or Heading Accounts and Headings: Long-term notes payable Loss on exchange Loss on sale/disposal Machinery Merchandise inventory Mortgage payable Net income Net loss Notes receivable Office salaries expense Office supplies expense Patents Prepaid advertising Prepaid insurance Prepaid interest Prepaid rent Property taxes expense Property taxes payable Search: Erase Cancel Categories: All assets Liabilities Equity Equity Revenues Expenses Other Headings & Totals Choose an Account or Heading Accounts and Headings: Property taxes payable Property, plant and equipment Rent earned Rent expense Rent expense, office space Rent expense, selling space Rent payable Rent receivable Repair expense Retained earnings Revenues Salaries expense Salaries payable Sales Sales discounts Sales returns and allowances Sales salaries expense Share capital Search: Erase Cancel ategories: II ssets abilities quity Equity Revenues Expenses Other eadings & Totals Choose an Account or Heading Accounts and Headings: Share capital Short-term notes payable Store supplies expense Supplies Supplies expense A Total assets Total current assets Total current liabilities Total equity Total expenses Total intangible assets Total liabilities Total liabilities and equity Total long-term investments Total long-term liabilities Total property, plant and equipment Total revenues Trademark Search: Categories: All Assets Liabilities Equity Equity Revenues Expenses Other Headings & Totals Choose an Account or Heading Accounts and Headings: Total assets Total current assets Total current liabilities Total equity Total expenses Total intangible assets Total liabilities Total liabilities and equity Total long-term investments Total long-term liabilities Total property, plant and equipment Total revenues Trademark Trucks Unearned consulting revenue Unearned rent Unearned revenue -Utilities expense Search: Erase Cancel D
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
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