ACC 291 Week 2. Brief Exercise 9-11. Do it Review 9-5. Exercise 9-7. Exercise 9-8. BYP 9-1. BYP 9-2.

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ACC 291 Week 2. Brief Exercise 9-11. Do it Review 9-5. Exercise 9-7. Exercise 9-8. BYP 9-1. BYP 9-2. Problem 9-2A. Problem 8-3A. With Answers. Brief Exercise 9-11
Do it Review 9-5
Exercise 9-7
Exercise 9-8Exercise 9-8Here are selected 2014 transactions of Cleland Corporation.Jan. 1Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $61,160 and had a useful life of 10 years with no salvage value.June 30Sold a computer that was purchased on January 1, 2012. The computer cost $35,400 and had a useful life of 4 years with no salvage value. The computer was sold for $4,470 cash.Dec. 31Sold a delivery truck for $9,240 cash. The truck cost $25,090 when it was purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $3,390 salvage value.Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Cleland Corporation uses straight-line depreciation. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
DateAccount Titles and ExplanationDebitCredit(To record depreciation expense for the first 6 months of 2014)(To record depreciation expense for the year 2014)Jan. 1Accumulated D61,160Equipment61,160June 30Depreciation E4,425Accumulated D4,425Cash4,470Accumulated D22,125Loss on Dispo8,805Equipment35,400Dec. 31eciation Expense4,340iation-Equipment4,340Accumulated D17,360Cash9,240Equipment25,090Gain on Dispo1,510
Solution
BYP 9-1Broadening Your Perspective 9-1The financial statements of Tootsie Roll are presented below.TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OFEarnings, Comprehensive Earnings and Retained Earnings (in thousands except per sharedata)For the year ended December 31,201120102009Net product sales$528,369$517,149$495,592Rental and royalty revenue4,1364,2993,739Total revenue532,505521,448499,331Product cost of goods sold365,225349,334319,775Rental and royalty cost1,0381,088852Total costs366,263350,422320,627Product gross margin163,144167,815175,817Rental and royalty gross margin3,0983,2112,887Total gross margin166,242171,026178,704Selling, marketing and administrative expenses108,276106,316103,755Impairment charges14,000Earnings from operations57,96664,71060,949Other income (expense), net2,9468,3582,100Earnings before income taxes60,91273,06863,049Provision for income taxes16,97420,0059,892Net earnings$43,938$53,063$53,157Net earnings$43,938$53,063$53,157Other comprehensive earnings (loss)(8,740)1,1832,845Comprehensive earnings$35,198$54,246$56,002Retained earnings at beginning of year.$135,866$147,687$144,949Net earnings43,93853,06353,157Cash dividends(18,360)(18,078)(17,790)Stock dividends(47,175)(46,806)(32,629)Retained earnings at end of year$114,269$135,866$147,687Earnings per share$0.76$0.90$0.89
Average Common and Class B Common shares outstanding57,89258,68559,425(The accompanying notes are an integral part of these statements.)CONSOLIDATED STATEMENTS OFFinancial PositionTOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)AssetsDecember 31,20112010CURRENT ASSETS:Cash and cash equivalents$78,612$115,976Investments10,8957,996Accounts receivable trade, less allowances of $1,731 and $1,53141,89537,394Other receivables3,3919,961Inventories:Finished goods and work-in-process42,67635,416Raw materials and supplies29,08421,236Prepaid expenses5,070

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