Tutor Question chapter 9+10 - ACCOUNTING TUTOR QUESTIONS...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCOUNTING TUTOR QUESTIONS CHAPTER 9 -10 GROUP: Vu Hoang Duong Dang The Duong Nguyen Thi My Hanh Nguyen Thi Tuyet Nhung Lam Vu Truc Thuy
Background image of page 1

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

View Full DocumentRight Arrow Icon
E9-28: 1. What is the cost of the machine to Freddy’s Restoration Company? Machine cost $45,000 Sales tax 2,000 Delivery costs 1,000 Assembly cost 1,400 Painting 600 Cost of machine $50,000 2. What is the amount of the first full year’s depreciation if Freddy’s uses the straight -line method? 50,000 Depreciation expense= = $3,333 depreciation expense/year 15 years E9-30 1 Jan. 1 lease property. ............................................... 9,413 Lease liability. .................................... 9,413 ( To record a copy machine acquired under a 5 years noncancelable lease.) Jan.31 Lease liability. ............................................... 122 Interest Expense. ............................................ 78 Cash. ................................................... 200 ( To record annual lease payment under capital lease) 2 Jan.1 there is no entry required because, this is the operating lease. The payment will be made at the end of each month Jan.31 Rent Expense. .......................................... 200 Cash ............................................................ 200 ( To record monthly rent of office building)
Background image of page 2
E9-33 1. 2008 a. Straight-line: 26,000 - 1,000 Depreciation expense = = $5,000/ year 5 b. Units-of-production : 26,000 – 1,000 Depreciation expense = x 9,000 = $2,045 110,000 2009 a. Straight-line: , 26,000 - 1,000 Depreciation expense = = $5,000/ year 5 b. Units-of-production : 26,000 – 1,000 Depreciation expense = x 24,000 = $5,455 110,000 2. Units-of-production depreciation method in which the cost of an asset is allocated to each period on the basis of the productive output or use of the asset during the period is more closely reflects the used-up service potential of the car. In this method, cost – salvage is divided by the asset’s useful life measured in miles (not in years as in straight-line method) to acquire the average depreciation expense per mile, and then multiply by the usage for the year. E 9-37 (p. 435) Original cost $700,000 Accumulated Depreciation, Building 150,000 Book Value 550,000 (Book Value = Original Cost – Accumulated Depreciation, Building)
Background image of page 3

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

View Full DocumentRight Arrow Icon
Accumulated Depreciation, Building. ................. 150,000 Loss on Impairment of Building and Land. .................. 430,000 (550,000 – 120,000) Building and Land (700,000 – 120,000). ...................... 580,000 (Recognized $430,000 impairment loss on building and land) E 9-38 (p.435) Accounting for the Disposal of Assets Using straight-line method, accumulated depreciation of the truck (after 4 years): Book value of the truck: $80,000 – $40,000 = $40,000 1. Canlas Company sells the truck for $45,000 cash. Cash.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/20/2011 for the course ECON 123 taught by Professor Mrews during the Spring '11 term at Korea Advanced Institute of Science and Technology.

Page1 / 14

Tutor Question chapter 9+10 - ACCOUNTING TUTOR QUESTIONS...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online