# ch 10 &11 - E 10-12 1(3893 3440/2 = 3,666.50 34,922...

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NAME: RUEI-HUI WANG INTERMEDIATE ACCOUNTING I BE 10-10 Cash 16,000 Accumulate depreciation 71,000 Equipment 80,000 Gain on disposal of equipment 7,000 BE 10-14 Jan 2 \$500,000 x 12/12 = \$ 500,000 Mar 31 600,000 x 9/12 = 450,000 June 30 400,000 x 6/12 = 200,000 Oct 30 600,000 x 2/12 = 100,000 \$2,100,000 \$1,250,000 Loans Rate Interest \$3,000,000 x 8% = 240,000 5,000,000 x 6% = 300,000 540,000 540,000/ 8,000,000 = 6.75% Total \$1,250,000 Specific borrowing 700,000 x 7% = 49,000 Excess 525,000 x 6.75% = 35,437.5 Capitalized interest 84,437.5 BE 10-16 Expense Salaries \$220,000 Depreciation on R&D 125,000 Facilities and equipment Utilities and other direct 66,000 Costs Payment to another company 120,000 For performing development work \$ 531,000

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E10-10 Land 1,200,000 + 80,000 + 150,000 + 42,000 + 45,000 + 5000 = 1,522,000 Building 50,000 + 3,250,000 + 24,000 = 3,324,000 Machinery 860,000 + 32,000 + 12,000 + 7,000 = 911,000 Forklifts 16,000 + 700,000/(1+7%) = 16,000 + 65,420.56 = 81,420.56
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Unformatted text preview: E 10-12 1. (3893+3440)/2 = 3,666.50 34,922/ 3666.5 = 9.52 2. Each dollar Cisco invested in fixed assets can generate \$9.52 dollars on its net sales. E 10-18 1. 72,000 + 14,000= 86,000 2. Land (new) 86,000 Land (old) 30,000 Cash 14,000 Gain 42,000 3. Land (new) 44,000 Land (old) 30,000 Cash 14,000 Q11-1 Depreciation is cost allocation for plant and equipment, depletion is cost allocation for natural resources, and amortization is cost allocation for intangibles. Depreciation, depletion, or amortization is considered as part of the cost of inventory in the manufacture of a product. When the product is sold, it becomes part of the cost of goods sold. BE 11-6 4,000,000/5=800,000 5,000,000/5=1,000,000 Total expense=800,000+1,000,000+3,000,000=4,800,000 BE 11-7 9,000,000-1,000,000 =8,000,000/25=320,000 320,000x2= 640,000 9,000,000-640,000 = 8,360,000 8,360,000-500,000 = 7,860,000 20-2=18 7,860,000/18= 436,666.67 BE 11-12...
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## This note was uploaded on 05/10/2010 for the course ACCOUNTING 128 taught by Professor Lee during the Spring '10 term at San Jose State.

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ch 10 &11 - E 10-12 1(3893 3440/2 = 3,666.50 34,922...

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