ACCT 211 EX Final Review Session.docx - Principles of...

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Principles of Accounting IFinal Exam Review SessionFall 20181. On January 2, 2017, the Matthews Band acquires sound equipment forconcert performances at a cost of $65,800. The band estimates it will usethis equipment for four years, during which time it anticipates performingabout 200 concerts. It estimates that after four years it can sell theequipment for $2,000. During year 2017, the band performs 45 concerts.Compute the depreciation and book value for 2017, 2018, and 2019 usingthe straight-line method.2. In early January 2017, NewTech purchases computer equipment for $154,000 touse in operating activities for the next four years. It estimates the equipment’ssalvage value at $25,000. Prepare a table showing depreciation and book value foreach of the four years assuming straight-line depreciation.1
Principles of Accounting IFinal Exam Review SessionFall 20183. Tory Enterprises pays $238,400 for equipment that will last five years and havea $43,600 salvage value. By using the equipment in its operations for five years,the company expects to earn $88,500 annually, after deducting all expenses exceptdepreciation. Prepare a table showing depreciation expense and book value foreach year assuming straight-line depreciation.4. On January 2, 2017, the Matthews Band acquires sound equipment forconcert performances at a cost of $65,800. The band estimates it will usethis equipment for four years, during which time it anticipates performingabout 200 concerts. It estimates that after four years it can sell theequipment for $2,000. During year 2017, the band performs 45 concerts;during 2018 performs 55 concerts; during 2019 50 concerts.Compute the depreciation and book value for 2017, 2018, and 2019 usingthe units-of-production method.2
Principles of Accounting IFinal Exam Review SessionFall 20185. A machine costing $257,500 with a four-year life and an estimated $20,000salvage value is installed in Luther Company’s factory on January 1. The factorymanager estimates the machine will produce 475,000 units of product during itslife. It actually produces the following units: 220,000 in 1st year, 124,600 in 2ndyear, 121,800 in 3rd year, 15,200 in 4th year.For years, 1-3, compute depreciationand book value for the machine under units-of-production method.

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Term
Summer
Professor
NoProfessor
Tags
Accounting, Balance Sheet, Depreciation, Expense, Generally Accepted Accounting Principles, Lula Plume

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