Chapter 10-in Class Problems.docx

Chapter 10-in Class Problems.docx - EXERCISE 10-14(a 1 Land...

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EXERCISE 10-14: (a) 1. Land 350,000 Building – Structure 875,000 Building – Services 175,000 Machinery and Equipment 700,000 Common Shares (12,500 X $168) 2,100,000 (The cost of the plant assets is $2,100,000, or 12,500 X $168. The cost is allocated in proportion to the appraised value: 1/6 to Land, 5/12 to Building – Structure, 1/12 to Building – Services, and 1/3 to Machinery and Equipment.) 2. Buildings ($105,000 + $61,000) 166,000 Machinery and Equipment 135,000 Land Improvements 122,000 Land 18,000 Cash 441,000 Machinery and Equipment ............................................... 265,300* Repairs Expense ............................................................... 12,000 Cash .......................................................................... 277,300 *($260,000 X 98%) + $10,500 (b) Machinery and Equipment ............................................... 265,300 Repairs Expense ............................................................... 12,000 Discount Lost .................................................................... 5,200 Cash .......................................................................... 282,500
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PROBLEM 10-10 (a) July 1, 2011 required journal entries: Manufacturing Building (building #1) ............................. 400,000 Storage Warehouse (building #2) .................................... 210,000 Machinery and Equipment (building #1) ......................... 75,000 Machinery and Equipment (building #2) ......................... 45,000 Common Shares ...................................................... 730,000 (acquisition of the assets) December 31, 2011 required journal entries: Depreciation Expense ...................................................... 20,000 Accum. Depr. – Mfg. Building (#1) .......................... 20,000 ($400,000 ÷ 10 x 1/2) Depreciation Expense ...................................................... 10,500 Accum. Depr. – Warehouse (#2) ............................. 10,500 ($210,000 ÷ 10 x 1/2) Depreciation Expense ...................................................... 12,500 Accum. Depr. – Machinery (#1) ............................... 12,500 ($75,000 ÷ 3 x 1/2) Depreciation Expense ...................................................... 2,500 Accum. Depr. – Machinery (#2) ............................... 2,500 ($45,000 ÷ 9 x 1/2) Accum. Depr. – Mfg. Building (building #1)
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  • Spring '10
  • Sandra
  • Depreciation, ........., storage warehouse

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