Unit 7.pdf - Instructor Tech Support Wendy Styron Kimberly...

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1. 2. Student: Steven Saint Date: 11/28/16 Instructor: Tech Support, Wendy Styron, Kimberly Garrett, Renee Sinclair, Jennifer Agee, Dee Wessler, Jennifer Byrom, Kristy Hawkins, Faculty Services, Dawn Dunson, Chris Marsh Course: BBA2201-15N-1 Assignment: Unit VII Homework Clothing purchased land, paying cash plus a note payable. In addition, paid delinquent , property tax of , title insurance costing and to level the land and remove an unwanted building. Record the journal entry for purchase of the land. Alton $88,000 $250,000 Alton $1,900 $500 $4,200 Begin by determining the cost of the land. Purchase price of land 338,000 $ Add related costs: Property taxes 1,900 $ Title insurance 500 Removal of building 4,200 6,600 Total cost of land 344,600 $ Record the journal entry for purchase of the land. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Land 344,600 Notes Payable 250,000 Cash 94,600 To record purchase of land with cash and note payable. Furniture purchased land, paying cash plus a note payable. In addition, paid , delinquent property tax of , title insurance costing and to level the land and remove an unwanted . building. The company then constructed an office building at a cost of It also paid for a fence around the property, for a sign near the entrance, and for special lighting of the grounds. Lavallee $95,000 $260,000 Lavallee $3,000 $2,000 $5,000 $450,000 $55,000 $16,000 $7,000 Requirements 1. Determine the cost of the land, land improvements, and building. 2. Which of these assets will depreciate? Lavallee Requirement 1. Determine the cost of the land, land improvements, and building. $ . The cost of the land is 365000 $ . The total cost of the land improvements is 78000 $ . The cost of the building is 450000 Requirement 2. Which of these assets will depreciate? Lavallee will depreciate Lavallee the building and the land improvements.
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3. , At the beginning of purchased a used airplane at a cost of . expects the plane to remain useful for ( years miles) and to have a . residual value of expects the plane to be flown miles the first year and miles the second year. 2016 Alaska Freight Airline $40,500,000 Alaska Freight Airline eight 6,000,000 $4,500,000 Alaska Freight Airline 1,100,000 1,500,000 Requirements 1. Compute second-year ( ) depreciation expense on the plane using the following methods: 2017 a. Straight-line b. Units-of-production c. Double-declining-balance 2. Calculate the balance in Accumulated Depreciation at the end of the second year for all three methods. Requirement 1a. Compute second-year ( ) depreciation expense on the plane using the straight-line method. 2017 Begin by selecting the formula to calculate the company's second-year depreciation expense on the plane using the straight-line method. Then enter the amounts and calculate the depreciation expense for the second year. ( Cost - Residual value ) / Useful life = Straight-line depreciation ( 40,500,000 $ - 4,500,000 $ ) / 8 = 4,500,000 $ Requirement 1b. Compute second-year ( ) depreciation expense on the plane using the units-of-production method. 2017 Before calculating the second-year depreciation expense on the plane using the units-of-production method, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation expense per unit.
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