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ACC 557 Week 6 Chapter 9 (E9 9 E9 11 E9 12 P9 3A) 2015 version

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EXERCISE 9-9

Jan. 1 Accumulated Depreciation—Equipment 58,000

Equipment 58,000

June 30 Depreciation Expense  4,000

Accumulated Depreciation—Equipment

($40,000 X 1/5 X 6/12)  4,000

30 Cash 14,000

Accumulated Depreciation—Equipment

($40,000 X 3/5 = $24,000; $24,000 + $4,000) 28,000

Gain on Disposal of Plant Assets

[$14,000 – ($40,000 – $28,000)] 2,000

Equipment 40,000

Dec. 31 Depreciation Expense  5,000

Accumulated Depreciation—Equipment

[($33,000 – $3,000) X 1/6] 5,000

31 Loss on Disposal of Plant Assets  8,000

Accumulated Depreciation—Equipment

[($33,000 – $3,000) X 5/6] 25,000

Equipment 33,000

Top of Form

Exercise 9-9

Your answer is correct.

Presented below are selected transactions at Tomas Company for 2014.

Jan. 1

Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $58,000 on that date. It had a useful life of 10 years with no salvage value.

June 30

Sold a compute

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ACC 557 Week 6 Chapter 9 (E9 9 E9 11 E9 12 P9 3A) 2015 version

  1. 1. ACC 557 Week 6 Chapter 9 (E9 9 E9 11 E9 12 P9 3A) Link : http://uopexam.com/product/acc-557-week-6-chapter-9-e9-9-e9-11-e9-12-p9-3a/ Sample content EXERCISE 9-9 Jan. 1 Accumulated Depreciation—Equipment 58,000 Equipment 58,000
  2. 2. June 30 Depreciation Expense 4,000 Accumulated Depreciation—Equipment ($40,000 X 1/5 X 6/12) 4,000 30 Cash 14,000 Accumulated Depreciation—Equipment ($40,000 X 3/5 = $24,000; $24,000 + $4,000) 28,000 Gain on Disposal of Plant Assets [$14,000 – ($40,000 – $28,000)] 2,000 Equipment 40,000 Dec. 31 Depreciation Expense 5,000 Accumulated Depreciation—Equipment [($33,000 – $3,000) X 1/6] 5,000 31 Loss on Disposal of Plant Assets 8,000 Accumulated Depreciation—Equipment [($33,000 – $3,000) X 5/6] 25,000 Equipment 33,000 Top of Form Exercise 9-9 Your answer is correct.
  3. 3. Presented below are selected transactions at Tomas Company for 2014. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $58,000 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2011. The computer cost $40,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2010. The truck cost $33,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Tomas Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2013.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 June. 30 (To record current depreciation)
  4. 4. June. 30 (To record the sale of the Asset) Dec. 31 (To record current depreciation) Dec. 31 (To record the disposal of the truck) Click here if you would like to Show Work for this question Question Attempts: 1 of 3 used Bottom of Form EXERCISE 9-11 (a) Dec. 31 Depletion Expense 108,000 Accumulated Depletion (120,000 X $.90) 108,000 Cost (a) $720,000 Units estimated (b) 800,000 tons Depletion cost per unit [(a) ÷ (b)] $0.90 (b) The costs pertaining to the unsold units are reported in current assets as part of inventory (30,000 X $.90 = $27,000). Top of Form Exercise 9-11
  5. 5. On July 1, 2014, Sutton Inc. invested $720,000 in a mine estimated to have 800,000 tons of ore of uniform grade. During the last 6 months of 2014, 120,000 tons of ore were mined and sold. (a) Your answer is correct. Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. $0.50.) Depletion cost per unit $ Click her http://uopexam.com/product/acc-557-week-6-chapter-9-e9-9-e9-11-e9-12-p9-3a/

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