Chpt_22_Solutions

Chpt_22_Solutions - EXERCISE 22-15(1520 minutes 1...

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EXERCISE 22-15 (15–20 minutes) 1. Accumulated Depreciation—Machinery .................. 25,500 Depreciation Expense ........................................ 8,500 Retained Earnings .............................................. 17,000 2006–2007 2008 Depreciation taken \$170,000* \$85,000 Depreciation (correct) * 153,000 76,500 * \$ 17,000 \$ 8,500 *\$510,000 X 1/6 X 2 2. Retained Earnings ...................................................... 45,000 Sales Salaries Expense ...................................... 45,000 3. No entry necessary. EXERCISE 22-15 (Continued) 4. Amortization Expense—Copyright ......................... 2,250 Retained Earnings .................................................... 4,500 Copyright ........................................................... 6,750 (\$45,000 ÷ 20 = \$2,250; ( \$2,250 X 2 = \$4,500) 5. Loss on Write-down of Inventories ........................ 87,000 Retained Earnings ............................................ 87,000 PROBLEM 22-6 (a) 1. Depreciation Expense ........................................ 86,625 Accumulated Depreciation—Asset A ....... 86,625

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Computations: Cost of Asset A \$495,000 Less: Depreciation prior to 2008 148,500 * Book value, January 1, 2008 \$346,500 *(\$495,000 ÷ 10) X 3 Depreciation for 2008: \$346,500 X 7/28** = \$86,625 **[7(7 + 1)] ÷ 2 = 28 2. Depreciation Expense ........................................ 17,000 Accumulated Depreciation—Asset B ....... 17,000 Computations:

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