UCB+UGBA102A+Final+Exam+Summer+2009+Inserts+_+Solns (1)

UCB+UGBA102A+Final+Exam+Summer+2009+Inserts+_+Solns (1) -...

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Unformatted text preview: NP10 9.231 1. Purchase of Land & Buildings Land $336,000 ($960,000 x 350,000/1,000,000) Buildings $624,000 ($960,000 x 650,000/1,000,000) Cash $960,000 2. Land & Land Improvements Land $6,000 (see below) Land Improvements $25,000 (see below) Cash $31,000 Sewage system $5,000 (Land) Parking lot $15,000 (Land Improvements) Tear down of shack $1,000 (Land) Block wall $10,000 (Land Improvements) $31,000 3. Depreciation of Truck Depreciation Expense, Truck $1,800 (see below) Acc. Depreciation, Truck $1,800 Original cost $18,000 Original residual value $3,000 Original depreciable amount $15,000 Original useful life 6 Original depreciation $2,500 Years of depreciation 2 Accumulated depreciation $5,000 Book value at end of second year $13,000 Revised residual value $4,000 Revised depreciable amount $9,000 Remaining useful life 5 (7 - 2) Third year depreciation $1,800 4. Depreciation of Machinery Depreciation Expense, Machinery $3,000 (see below) Acc. Depreciation, Machinery $3,000 Acquisition cost $15,000 Residual value $- Depreciable amount $15,000 Estimated useful life 10,000 hours Depreciable rate $1.50 2007 Utilization 2,000 Annual depreciation $3,000 5. Sale of Truck Cash $10,000 Acc. Depreciation, Truck $6,800 ($5,000 + $1,800) Loss on Sale of Truck $1,200 ($18,000 - $10,000 - $6,800) Truck $18,000 NP10 10.218 1. Issuance of Bonds 1-Mar Cash $408,000 Bond Interest Payable $8,000 ($400,000 x 12% x 2/12) Bonds Payable $400,000 Issued $400,000, 12% bonds between interest dates 2. First Interest Payment 30-Jun Bond Interest Expense $16,000 ($24,000 - $8,000) Bond Interest Payable $8,000 Cash $24,000 ($400,000 x 12% x 6/12) First interest payment 3. Second Interest Payment 31-Dec Bond Interest Expense $24,000 Cash $24,000 ($400,000 x 12% x 6/12) Second interest payment 4. Bond Interest Expense for 2007 30-Jun First interest payment $16,000 31-Dec Second interest payment $24,000 Total interest expense $40,000 5. Bond Interest Expense for 2008 30-Jun Third interest payment $24,000 31-Dec Fourth interest payment $24,000 Total interest expense $48,000 Common stock - $5 par value, 100,000 shares authorized, 50,000 shares issued and outstanding $250,000 Additional paid-in capital $125,000 Retained earnings $400,000 Total stockholders' equity $775,000 NP10 11.203NP10 11....
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This note was uploaded on 10/24/2011 for the course UGBA 102A taught by Professor Udpa during the Summer '07 term at Berkeley.

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UCB+UGBA102A+Final+Exam+Summer+2009+Inserts+_+Solns (1) -...

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