Solultios.F09.Final - CONCORDIA UNIVERSITY DEPARTMENT OF...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
CONCORDIA UNIVERSITY FINANCIAL ACCOUNTING DEPARTMENT OF ACCOUNTANCY COMM 217 ALL SECTIONS SUGGESTED SOLUTION FINAL EXAMINATION Fall 2009 Question 1 (21 marks) Multiple-choice (1.5 marks per correct answer) 1. b 2. a 3. c 4. b 5. a 6. a 7. d 8. a 9. c 10. d 11. d 12. c 13. c 14. c
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Question 2 (16 marks) Req. 1 Total market value of two machines = $240,000 + $160,000 = $400,000 Allocation of the purchase price: Machine A $350,000 x (240,000/400,000) = $210,000 Machine B $350,000 x (160,000/400,000) = $140,000 Req. 2 Equipment/Machinery ($350,000 + $2,000 + $1,000) 353,000 Cash ($353,000 – $250,000 ) 103,000 Notes payable 250,000 Req. 3 Amortization of Machine A– 2009 = ($212,000 – 0 ) x 2/10 = $42,400 Amortization of Machine A– 2010 = ($212,000 – 42,400 ) x 2/10 = $33,920 Req. 4 Amortization rate per unit for Machine B = ($140,000 + $1,000 – $6,000 ) / 100,000 = $1.35 Accumulated amortization at September 30, 2009 = $1.35 x 9,000 units = $12,150 Net book value at September 30, 2009 = $141,000 – 12,150 = $128,850 Loss on sale of equipment = $128,850 – $125,000 = $3850 Amortization Expense 12,150 Accumulated amortization 12,150 Cash 125,000 Accumulated amortization 12,150 Loss on sale of equipment 3,850 Equipment 141,000
Image of page 2
Question 3 (21 marks) RT Ltd. Cash Flow Statement For the Year ended December 31, 2009 Operating activities Net income $1,110,000
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern