INTERMEDIATE ACCOUNTING
3rd Edition
ISBN: 9780136946694
Author: GORDON
Publisher: RENT PEARS
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Textbook Question
Chapter 22, Problem 22.6MC
Sykes Corporation's comparative
- a. $190,000
- b. $200,000
- c. $210,000
- d. $220,000
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Disposition of Assets: Journalizing
Mitchell Parts Co. had the following plant asset transactions during the year:
1. Assets discarded or sold:
Motor #12, which had a cost of $2,800 and accumulated depreciation of
Jan. 1
$2,800, was discarded.
Motor #8, which had a cost of $4,400 and accumulated depreciation of $4,000,
8
was sold for $200.
Motor #16, which had a cost of $5,600 and accumulated depreciation of
14
$5,400, was sold for $450.
2. Assets exchanged or traded in:
Feb. 1
Motor #6, which had a cost of $6,000 and accumulated depreciation of $4,800,
was traded in for a new motor (#22) with a fair market value of $7,000. The
old motor and $5,600 in cash were given for the new motor.
° Motor #9, which had a cost of $5,500 and accumulated depreciation of $5,000,
was traded in for a new motor (#23) with a fair market value of $6,500. The
old motor and $6,200 in cash were given for the new motor.
Required:
Prepare general journal entries for the transactions.
Page: 1
DOC. POST
NO. REF.…
The following are financial data taken from the annual report of Bree & Company:
Year 2
Year 1
Net sales
$134,448
$130,060
Gross property, plant and equipment
Accumulated depreciation
57,179
52,518
37,154
34,180
Intangible assets (net)
57,504
36,276
A. Calculate the following ratios for Year 1 and Year 2:
1. Fixed asset turnover
2. Accumulated depreciation divided-by-gross fixed assets
B. What do the trends in these ratios reveal about Bree & Company?
Equipment was acquired at the beginning of the year at a cost of $280,000. The equip-ment was depreciated using the double-declining-balance method based on an estimated useful life of 16 years and an estimated residual value of $14,000.
a. What was the depreciation for the first year?
b. Assuming that the equipment was sold at the end of the second year for $230,400, determine the gain or loss on the sale of the equipment.
c. Journalize the entry to record the sale.
Chapter 22 Solutions
INTERMEDIATE ACCOUNTING
Ch. 22 - Prob. 22.1QCh. 22 - Prob. 22.2QCh. 22 - Prob. 22.3QCh. 22 - Prob. 22.4QCh. 22 - Prob. 22.5QCh. 22 - How do firms reclassify gains and losses on the...Ch. 22 - Prob. 22.7QCh. 22 - Prob. 22.8QCh. 22 - Prob. 22.9QCh. 22 - Prob. 22.10Q
Ch. 22 - Prob. 22.11QCh. 22 - What approach is used in preparing the operating...Ch. 22 - Under the indirect method, do firms subtract bond...Ch. 22 - Do firms subtract pension expense from net income...Ch. 22 - Prob. 22.15QCh. 22 - Prob. 22.16QCh. 22 - Prob. 22.1MCCh. 22 - Prob. 22.2MCCh. 22 - Big Dollars Corporation's comparative financial...Ch. 22 - Prob. 22.4MCCh. 22 - Prob. 22.5MCCh. 22 - Sykes Corporation's comparative balance sheets at...Ch. 22 - Prob. 22.7MCCh. 22 - Prob. 22.8MCCh. 22 - Prob. 22.1BECh. 22 - Prob. 22.2BECh. 22 - Prob. 22.3BECh. 22 - Prob. 22.4BECh. 22 - Prob. 22.5BECh. 22 - Prob. 22.6BECh. 22 - Prob. 22.7BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.9BECh. 22 - Prob. 22.10BECh. 22 - Prob. 22.11BECh. 22 - Prob. 22.12BECh. 22 - Prob. 22.13BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.15BECh. 22 - Prob. 22.16BECh. 22 - Prob. 22.17BECh. 22 - Prob. 22.18BECh. 22 - Prob. 22.19BECh. 22 - Prob. 22.20BECh. 22 - Prob. 22.21BECh. 22 - Prob. 22.22BECh. 22 - Complex Transactions, Acquisitions and...Ch. 22 - Prob. 22.24BECh. 22 - Prob. 22.25BECh. 22 - Complex Transactions, Change in Accounts...Ch. 22 - Prob. 22.27BECh. 22 - Prob. 22.28BECh. 22 - Prob. 22.1ECh. 22 - Prob. 22.2ECh. 22 - Prob. 22.3ECh. 22 - Prob. 22.4ECh. 22 - Prob. 22.5ECh. 22 - Prob. 22.6ECh. 22 - Prob. 22.7ECh. 22 - Prob. 22.8ECh. 22 - Prob. 22.9ECh. 22 - Prob. 22.10ECh. 22 - Statement of Cash Flows, Indirect Method....Ch. 22 - Prob. 22.12ECh. 22 - Prob. 22.13ECh. 22 - Prob. 22.14ECh. 22 - Prob. 22.15ECh. 22 - Prob. 22.16ECh. 22 - Prepare Statement of Cash Flows, Direct Method....Ch. 22 - Prob. 22.2PCh. 22 - Prob. 22.3PCh. 22 - Prob. 22.4PCh. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Prob. 22.11PCh. 22 - Prob. 22.12PCh. 22 - Prob. 22.13PCh. 22 - Statement of Cash Flows, Direct Method, Complex...Ch. 22 - Prob. 1JCCh. 22 - Prob. 1FSCCh. 22 - Prob. 1SSCCh. 22 - Surfing the Standards Case 2: Cash Flow per Share...Ch. 22 - Basis for Conclusions Cases Basis for Conclusions...Ch. 22 - Basis for Conclusions Case 2: Indirect versus...
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