Chapter 9 Solutions

# Chapter 9 Solutions - PRACTICE EXERCISES PE 9–1A May 27...

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Unformatted text preview: PRACTICE EXERCISES PE 9–1A May 27 Accumulated Depreciation—Delivery Van......... 950 Cash.................................................................. 950 27 Delivery Van.......................................................... 450 Cash.................................................................. 450 PE 9–1B Oct. 9 Delivery Truck....................................................... 1,150 Cash.................................................................. 1,150 9 Repairs and Maintenance Expense.................... 40 Cash.................................................................. 40 PE 9–2A a. \$410,000 (\$485,000 – \$75,000) b. 4% = (1/25) c. \$16,400 (\$410,000 × 4%), or (\$410,000/25 years) PE 9–2B a. \$120,000 (\$125,000 – \$5,000) b. 12.5% = (1/8) c. \$15,000 (\$120,000 × 12.5%), or (\$120,000/8 years) PE 9–3A a. \$99,000 (\$134,000 – \$35,000) b. \$0.33 per mile (\$99,000/300,000 miles) c. \$17,160 (52,000 miles × \$0.33) PE 9–3B a. \$80,000 (\$95,000 – \$15,000) b. \$2.00 per hour (\$80,000/40,000 hours) c. \$10,200 (5,100 hours × \$2.00) PE 9–4A a. 5% = [(1/40) × 2] b. \$32,500 (\$650,000 × 5%) PE 9–4B a. 40% = [(1/5) × 2] b. \$58,000 (\$145,000 × 40%) PE 9–5A a. \$12,000 [(\$250,000 – \$34,000)/18] b. \$130,000 [\$250,000 – (\$12,000 × 10)] c. \$15,500 [(\$130,000 – \$6,000)/8] PE 9–5B a. \$8,125 [(\$80,000 – \$15,000)/8] b. \$47,500 [\$80,000 – (\$8,125 × 4)] c. \$7,500 [(\$47,500 – \$10,000)/5] PE 9–6A a. \$81,000 = \$324,000 × [(1/8) × 2)] = \$324,000 × 25% b. \$17,750 gain, computed as follows: Cost...................................................... \$324,000 Less: First-year depreciation............ (81,000) Second-year depreciation....... (60,750 ) [(\$324,000 – \$81,000) × 25%] Book value at end of second year.... \$182,250 Gain on sale (\$200,000 – \$182,250) = \$17,750 c. Cash.................................................................................. 200,000 Accumulated Depreciation—Equipment....................... 141,750 Equipment................................................................... 324,000 Gain on Sale of Equipment....................................... 17,750 PE 9–6B a. \$9,500 [(\$160,000 – \$17,500)/15] b. \$13,000 loss {\$90,000 – [\$160,000 – (\$9,500 × 6)]} c. Cash.................................................................................. 90,000 Accumulated Depreciation—Equipment....................... 57,000 Loss on Sale of Equipment............................................ 13,000 Equipment................................................................... 160,000 PE 9–7A a. \$0.60 per ton = \$120,000,000/200,000,000 tons b. \$18,693,000 = (31,155,000 tons × \$0.60 per ton) c. Dec. 31 Depletion Expense......................................... 18,693,000 Accumulated Depletion........................... 18,693,000 Depletion of mineral deposit.Depletion of mineral deposit....
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## This note was uploaded on 05/17/2011 for the course ACCT 2301 taught by Professor White during the Spring '08 term at Central Texas College.

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Chapter 9 Solutions - PRACTICE EXERCISES PE 9–1A May 27...

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