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4 on march 1 mocl co began construction of a small

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4. On March 1, Mocl Co. began construction of a small building. The following expenditureswere incurred for construction:March 1$450,000May 1540,000July 1200,000The building was completed and occupied on July 1.To help pay for construction$100,000 was borrowed on March 1 on a 12%, three-year note payable. The only other debtoutstanding during the year was a $1,000,000, 10% note issued two years ago.(12 points)Instructions(a) Calculate the weighted-average accumulated expenditures.
(b) Calculate avoidable interest.0
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/Intermediate-Accounting-Reporting-and-Analysis-3rd-Edition-9781337788281-780/
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Chapter 7 / Exercise E7-22
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
5. August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset isreferred to below as “Asset A,” and Wiggins' is referred to as “Asset B.” The following factspertain to these assets.Asset AAsset BOriginal cost$420,000$540,000Accumulated depreciation (to date of exchange)200,000300,000Fair value at date of exchange200,000250,000Cash received by Hyde, Inc.50,000Cash paid by Wiggins, Inc.50,000InstructionsPrepare the entries on both companies' books assuming that the exchange lackedcommercial substance.(12 Points)
August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset isreferred to below as “Asset A,” and Wiggins' is referred to as “Asset B.” The following factspertain to these assets.Asset AAsset BOriginal cost$420,000$540,000Accumulated depreciation (to date of exchange)200,000300,000Fair value at date of exchange200,000150,000Cash received by Hyde, Inc.50,000Cash paid by Wiggins, Inc.50,000InstructionsPrepare the entries on both companies' books assuming that the exchange lackedcommercial substance.(12 Points)
6. The Franklin Company has aperiodicinventory system, and its records show the followinginformation regarding inventory sales, purchases, and costs. Select the inventory methodthat will result in the highest cash flow for Franklin, and calculate Franklins, endinginventory and gross profit.(12 Points)UnitsPrice per UnitTotalBeginning Inventory10$5.00$50.00Purchases-8/1306.00180.008/10107.0070.008/30208.00160.00Total70$460.00Sales - 8/52020.00400.008/202025.00500.008/311020.00200.00Total501,100.0016070120
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Term
Spring
Professor
DM.Dillon
Tags
Accounting, new machinery, Wiggins Inc
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Intermediate Accounting: Reporting and Analysis
The document you are viewing contains questions related to this textbook.
Chapter 7 / Exercise E7-22
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified

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