Wk5 D1 - E10-15 (10-15 min.) Allocation of cost to each...

Info iconThis preview shows page 1. Sign up to view the full content.

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

Unformatted text preview: E10-15 (10-15 min.) Allocation of cost to each lot: Lot 1 2 3 Totals Appraised Value $50,000 60,000 70,000 $150,000 Proportion 0.278 0.333 0.389 1.000 Journal Date Accounts and Explanations Land purchased: Lot 1 Lot 2 Lot 3 Cash x x x Allocated Cost $150,000 = $41,700 $150,000 = 49,950 $150,000 = 58,350 $150,000 ournal nations Post Ref. Debit 41,667 50,000 58,333 150,000 Credit P10-31A (30-40 min.) Req. 1 Straight-Line Depreciation Schedule Depreciation for the Year Date Asset Cost Depr. Rate Depreciable Cost Depreciation Expense 1/2/06 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 $70,000 1/6 1/6 1/6 1/6 1/6 1/6 $55,800 $55,800 $55,800 $55,800 $55,800 $55,800 $9,300 $9,300 $9,300 $9,300 $9,300 $9,300 Units-of-Production Depreciation Schedule Depreciation for the Year Date Asset Cost Depr. Per Mile Number of Miles Depreciation Expense 1/2/06 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 $70,000 $0.588 $0.588 $0.588 $0.588 $0.588 $0.588 18,000 18,000 18,000 18,000 18,000 18,000 $10,044 $10,044 $10,044 $10,044 7,812 7,812 Double-Declining-Balance Depreciation Schedule Depreciation for the Year Date Asset Cost DDB Rate Asset Book Value Depreciation Expense 1/2/06 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 $70,000 1/6*2 1/6*2 1/6*2 1/6*2 1/6*2 1/6*2 $55,800 51,400 34,267 22,844 15,230 $18,600 17,133 11,422 7,615 1,030 Req. 2 Answer: The Declining Balance Depreciation Schedule is the better choice because accumulated depreciation looks better for tax purposes. preciation Schedule on for the Year Depreciation Expense Accumulated Depreciation Asset Book Value $9,300 $9,300 $9,300 $9,300 $9,300 $9,300 $9,300 $18,600 $27,900 $37,200 $46,500 $55,800 $70,000 60,200 51,400 42,100 32,800 23,500 14,200 Depreciation Schedule on for the Year Depreciation Expense Accumulated Depreciation Asset Book Value $10,044 $10,044 $10,044 $10,044 7,812 7,812 $10,044 20,088 30,132 40,176 47,988 55,800 $70,000 59,956 49,912 39,868 29,824 22,012 14,200 nce Depreciation Schedule on for the Year Depreciation Expense Accumulated Depreciation Asset Book Value $18,600 17,133 11,422 7,615 1,030 $18,600 35,733 47,156 54,770 55,800 $70,000 51,400 34,267 22,844 15,230 14,200 14,200 is the better choice because the . E11-17 (10-15 min.) Regular Pay Commissions (10% of $80,000) Gross pay Amounts withheld Charitable Donations Employee Co-Pay Health Benefits Income Tax FICA Net pay $750.00 8,000.00 $8,750.00 $25.00 50.00 1,050.00 700.00 $6,925.00 P11-31B (30-40 min.) Journal Date 2006 3-Feb Accounts and Explanations Equipment Note Payable Purchased equipment on 9mo/ 6% no 28-Feb Accounts receivable Cash Sales revenue Sales tax payable Recorded sales of $60,000 with 5% ta Sales tax payable Cash Paid state sales tax 7-Mar 30-Apr Cash Note payable- Long-term Note payable 9% annual Note payable Interest payable Cash Paid Feb. 3 Note payable 3-Aug 30-Nov Inventory Note payable 3mo/ 6% 31-Dec Warranty expenses (200,000*3%) Warranty payable Estimated warranty payable Interest expense 31-Dec Interest payable Accrued interest on April 30 note 31-Dec Interest expense (7000*6%)*(1/3) Interest payable Accrued interest Nov 30 note Note payable Interest expense (7000*6%)*(2/3) Interest payable Cash Paid Nov 30 note Interest payable Interest expense (100,000*9%)*(4/12) Cash Paid interest April 30 note 2007 28-Feb 30-Apr Journal lanations Post Ref. Debit 40,000 40,000 ent on 9mo/ 6% note 42,000 21,000 60,000 3,000 $60,000 with 5% tax 3,000 3,000 te sales tax 100,000 100,000 le 9% annual 40,000 3,600 43,600 Note payable 7,000 7,000 o/ 6% 6,000 6,000 arranty payable 6,000 Credit 6,000 t on April 30 note 140 140 est Nov 30 note 7,000 280 140 7,420 v 30 note 6,000 3,000 9,000 t April 30 note 2) ...
View Full Document

This note was uploaded on 04/20/2011 for the course ACC 205 taught by Professor Robertcarr during the Spring '10 term at Ashford University.

Ask a homework question - tutors are online