Chapter 10 Practice Problems and Solutions

Chapter 10 Practice - BRIEF EXERCISE 10-1 $27,000 $1,400 $10,200 = $38,600 BRIEF EXERCISE 10-2 Expendit ures Date Amount Capitalization Period

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Unformatted text preview: 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 $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 $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 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.......................................................................Truck....
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This note was uploaded on 02/09/2012 for the course ACCT 3112 taught by Professor Jokoehn during the Spring '10 term at UCM.

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Chapter 10 Practice - BRIEF EXERCISE 10-1 $27,000 $1,400 $10,200 = $38,600 BRIEF EXERCISE 10-2 Expendit ures Date Amount Capitalization Period

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