Team D problems 10-5A and 10-7A

Team D problems 10-5A and 10-7A - 45,000 Cash Jan-Research...

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P10-5A a) Month Day May 1 Depreciation Expense 26,000 Accumulated Depreciation - Equipment (78,000 x 1/10 x 4/12) 1 Cash 450,000 Accumulated Depreciation - Equipment 338,000 Equipment Gain on Disposal* June 1 Cash 1,500,000 Land Gain on Disposal July 1 Equipment 2,000,000 Cash Dec. 31 Depreciation Expense 50,000 Accumulated Depreciation - Equipment (500,000 x 1/10) 31 Accumulated Depreciation - Equipment 500,000 Equipment b) Dec 31 Depreciation Expense 570,000 Accumulated Depreciation - Buildings (28,500 x 1/50) 31 Depreciation Expense 4,772,000 Accumulated Depreciation - Equipment (46,720,000* x 1/10) = 4,672,000 [(2,000,000 x 1/10) x 6/12] = 100,000 (4,672,000 + 100,000) = 4,772,000 *(48,000,000 - 780,000 - 500,000) c) Jimenez Company Partial Balance Sheet 31-Dec-09 Plant Assets Land Buildings 28,500,000 Less: Accumulated Depreication - Buildings 12,670,000 Equipment 48,720,000 Less: Accumulated Depreication - Equipment 9,010,000 Total Plant Assets P10-7A a) Jan 2 Patents
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Unformatted text preview: 45,000 Cash Jan-Research and Development Expense 140,000 June Cash Sept 1 Advertising Expense 50,000 Cash Oct 1 Franchise 100,000 Cash b) Dec 31 Amortization Expense - Patents 12,000 Patents [(70,000 x 1/10) + (45,000 x 1/9)] 31 Amortization Expense - Franchise 5,300 Franchise [(48,000 x 1/10) + (100,000 x 1/50 x 3/12)] c) Intangible Assets Patents (115,000 cost - 19,000 amortization)* 96,000 Franchise (148,000 cost - 24,500 amortization)** 123,500 219,500 * = cost(70,000 + 45,000); amortization(7,000 +12,000) ** = cost(48,000 + 100,000); amortization(19,200 + 5,300) 26,000 780,000 8,000 * Gain on Disposal = cost 780,000 Accum dep Equip 338,000 400,000 book value 442,000 1,100,000 cash proceeds 450,000 Gain on disposal 8,000 2,000,000 50,000 500,000 570,000 4,772,000 5,730,000 15,830,000 39,710,000 61,270,000 45,000 140,000 50,000 100,00 12,000 5,300...
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This note was uploaded on 12/19/2010 for the course ACC 281 taught by Professor Feleciawhitley during the Summer '10 term at University of Phoenix.

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Team D problems 10-5A and 10-7A - 45,000 Cash Jan-Research...

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