{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 10 Practice Problems and Solutions

# Chapter 10 Practice Problems and Solutions - BRIEF EXERCISE...

This preview shows pages 1–7. Sign up to view the full content.

BRIEF EXERCISE 10-1 \$27,000 + \$1,400 + \$10,200 = \$38,600 BRIEF EXERCISE 10-2 Expendit ures Date Amount Capitalization Period Weighted-Average Accumulated Expenditures 3/1 \$1,800,000 10/12 \$1,500,000 6/1 1,200,000 7/12 700,000 12/31 3,000,000 0 0 \$6,000,000 \$2,200,000 BRIEF EXERCISE 10-3 Principal Interest 10%, 5-year note \$2,000,000 \$200,000 11%, 4-year note 3,500,000 385,000 \$5,500,000 \$585,000 Weighted-average interest rate = \$585,000 = 10.64% \$5,500,000 BRIEF EXERCISE 10-4 Weighted-Average X Interest = Avoidable Accumulated Expenditures Rate Interest \$1,000,000 12% \$120,000 1,200,000 10.64% 127,680

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

View Full Document
\$2,200,000 \$247,680
BRIEF EXERCISE 10-6 Fair Value % of Total Cost Recorded Amount Land \$ 60,000 60/360 X \$315,000 \$ 52,500 Building 220,000 220/360 X \$315,000 192,500 Equipment 80,000 80/360 X \$315,000 70,000 \$360,000 \$315,000 BRIEF EXERCISE 10-8 Computer ................................................................ 3,300 Accumulated Depreciation ................................... 18,000 Truck .............................................................. 20,000 Cash ............................................................... 500 Gain on Disposal of Truck ........................... 800

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

View Full Document
BRIEF EXERCISE 10-9 Computer (\$3,300 – \$800) ..................................... 2,500 Accumulated Depreciation ................................... 18,000 Truck .............................................................. 20,000 Cash ............................................................... 500 BRIEF EXERCISE 10-10 Office Equipment ................................................... 5,000 Accumulated Depreciation ................................... 3,000 Loss on Disposal of Machine ............................... 4,000 Machine ......................................................... 9,000 Cash ............................................................... 3,000 BRIEF EXERCISE 10-11 Truck ....................................................................... 37,000 Accumulated Depreciation ................................... 27,000 Loss on Disposal of Truck .................................... 2,000 Truck .............................................................. 30,000 Cash ............................................................... 36,000 BRIEF EXERCISE 10-12 Truck ....................................................................... 35,000 Accumulated Depreciation ................................... 17,000 Loss on Disposal of Truck .................................... 1,000 Truck .............................................................. 20,000 Cash ............................................................... 33,000

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

View Full Document
BRIEF EXERCISE 10-13 Only cost (c) is expensed when incurred.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}