SCh09 - Student Name: Instructor Class: McGraw-Hill/Irwin...

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Instructor Class: McGraw-Hill/Irwin Demonstration Case 9 Requirement 1: Date Assets = Liabilities + Stockholders' Equity Jan. 1 Cash - 100,000 Note payable + 205,000 Land + 130,000 Building + 175,000 Jan. 3 Cash - 38,000 Building + 38,000 July 10 Cash - 1,200 Repairs Expense - 1,200 Dec. 31 a Accumulated Depreciation - 6,000 Depreciation Expense - 6,000 Dec. 31 b No Entry Dec. 31 c Accumulated Depreciation - 50,000 Depreciation Expense - 50,000 Dec. 31 d Equipment - 85,000 Loss due to asset impairment - 85,000 Requirement 2: Journal entries for events during the year: January 1, 2010 dr Land 130,000 dr Building 175,000 cr Cash 100,000 cr Note Payable 205,000 January 3, 2010 dr Building 38,000 cr Cash 38,000 January 10, 2010 dr Repairs Expense 1,200 cr Cash 1,200 Adjusting journal entries at December 31, 2010: dr Depreciation Expense 6,000 cr Accumulated Depr.-Building 6,000 dr Depreciation Expense 50,000 cr Accumulated Depr. Equip. 50,000 dr Impairment Loss 85,000 cr Equipment 85,000 Requirement 4: Assets Property, Plant and Equipment Land $130,000 Building 213,000 Equipment 565,000 Property, Plant and Equipment at Cost 908,000 Less: Accum Depreciation (206,000) Property, Plant and Equipment, net 702,000 <--Correct! Goodwill 100,000 <--Correct! Requirement 4:
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SCh09 - Student Name: Instructor Class: McGraw-Hill/Irwin...

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