Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 9, Problem 9.24EX
(A)
To determine
Exchange of fixed assets: It refers to the purchase of new fixed assets in exchange of old fixed assets. Fixed Assets refer to the long-term assets having a useful life of more than a year which is, acquired by a company to be used in its business activities, for generating revenue. Examples of fixed assets are Plant, Property, Equipment, Land, and Buildings.
the amount of cash given.
(B)
To determine
the gain or (loss) on the exchange of equipment.
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Analyze the following transactions and identify its effects on assets, liabilities, and capital. Write ? for increase, ? for decrease, NE for No effect and I/D if the effect is only in one major accounts.
1.
2.
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6.
7.
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10.
Which of the following statements regarding selling fixed assets for cash is NOT true?
a.The journal entry is similar to discarding fixed assets.
b.The cash payment to the buyer is recorded.
c.The cash receipt is recorded.
d.If the selling price is more than the book value, a gain is recorded.
Discuss the basic accounting problem that arises in handling each of the following situations.
a. Assets purchased by issuance of common stock.
b. Acquisition of plant assets by gift or donation.
c. Purchase of a plant asset subject to a cash discount.
d. Assets purchased on a long-term credit basis.
e. A group of assets acquired for a lump sum.
f. An asset traded in or exchanged for another asset.
Chapter 9 Solutions
Corporate Financial Accounting
Ch. 9 - ONeil Office Supplies has a fleet of automobiles...Ch. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Distinguish between the accounting for capital...Ch. 9 - Immediately after a used truck is acquired, a new...Ch. 9 - Keyser Company purchased a machine that has a...Ch. 9 - Is it necessary for a business to use the same...Ch. 9 - A. Under what conditions is the use of an...Ch. 9 - For some of the fixed assets of a business, the...Ch. 9 - Prob. 10DQ
Ch. 9 - Straight-line depreciation A building acquired at...Ch. 9 - Units-of-activity depreciation A truck acquired at...Ch. 9 - Double-declining-balance depreciation A building...Ch. 9 - Revision of depreciation Equipment with a cost of...Ch. 9 - Capital and revenue expenditures On February 14,...Ch. 9 - Sale of equipment Equipment was acquired at the...Ch. 9 - Prob. 9.7BECh. 9 - Prob. 9.8BECh. 9 - Costs of acquiring fixed assets Melinda Staffers...Ch. 9 - Prob. 9.2EXCh. 9 - Prob. 9.3EXCh. 9 - Prob. 9.4EXCh. 9 - Straight-line depreciation rates Convert each of...Ch. 9 - Straight-line depreciation A refrigerator used by...Ch. 9 - Depreciation by units-of-activity method A...Ch. 9 - Depreciation by units-of-activity method Prior to...Ch. 9 - Depreciation by two methods A Kubota tractor...Ch. 9 - Depreciation by two methods A storage tank...Ch. 9 - Partial-year depreciation Equipment acquired at a...Ch. 9 - Prob. 9.12EXCh. 9 - Capital and revenue expenditures Warner Freight...Ch. 9 - Prob. 9.14EXCh. 9 - Capital and revenue expenditures Quality Move...Ch. 9 - Capital expenditure and depreciation Willow Creek...Ch. 9 - Entries for sale of fixed asset Equipment acquired...Ch. 9 - Disposal of fixed asset Equipment acquired on...Ch. 9 - Prob. 9.19EXCh. 9 - Amortization entries Kleen Company acquired patent...Ch. 9 - Prob. 9.21EXCh. 9 - Balance sheet presentation List the errors you...Ch. 9 - Asset traded for similar asset A printing press...Ch. 9 - Prob. 9.24EXCh. 9 - Entries for trade of fixed asset On July 1, Twin...Ch. 9 - Entries for trade of fixed asset On October 1,...Ch. 9 - Prob. 9.1APRCh. 9 - Comparing three depreciation methods Dexter...Ch. 9 - Depreciation by three methods; partial years...Ch. 9 - Depreciation by two methods; sale of fixed asset...Ch. 9 - Prob. 9.5APRCh. 9 - Amortization and depletion entries Data related to...Ch. 9 - Allocating payments and receipts to fixed asset...Ch. 9 - Comparing three depreciation methods Waylander...Ch. 9 - Depreciation by three methods; partial years...Ch. 9 - Depreciation by two methods; sale of fixed asset...Ch. 9 - Transactions for fixed assets, including sale The...Ch. 9 - Amortization and depletion entries Data related to...Ch. 9 - Continuing Company AnalysisAmazon: Fixed asset...Ch. 9 - Prob. 9.2ADMCh. 9 - Prob. 9.3ADMCh. 9 - Comcast, Google, and Walmart: Fixed asset turnover...Ch. 9 - Prob. 9.1TIFCh. 9 - Communication Godwin Co. owns three delivery...
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- a) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to asset ratio = total equity/total asset) %3D b) Calculate the duration and convexity of the both asset and liability sidesarrow_forward21) Identify the effects of the following transactions on the asset, liability and owner's equity (Capital): eg: increase asset, increase liability, decrease capital....) item Transaction Effect a. Purchase a machine on credit b Sold vehicle by cheque C. Paid supplier by cash d. Withdraw cash by owner for personal use e. Received loan of cash from Alex f. Owner paid a creditor from his private funds Customer paid us by cheque g. h. Took $520 from bank and put in cash till i. Purchase lorry by cash j. Started business with $40,000 in bank account Bought van by cheque Sold some office equipment by cash Purchase inventory by credit Sold motor vehicle by credit Owner took inventory for own use Bought building $200,000 and paid cash $10,000 as deposit, balance by credit Paid loan by cheque Purchase computer terminals from DE on credit Received cash from customer Owner put in additional $10,000 cash into business Owner brought in a computer for office use k. 1. m. n. 0. P. 9. r. S. t. u.arrow_forwardExercise 1-2 The following items are included in the Cash general ledger account of SANTAN COMPANY as of Dec. 31, 2019: 1. Current account with MBTC 2. Current account with MBTC (overdraft) 3. Petty cash fund (with P350 unreplenished vouchers) 4. Change fund (originally set up by retaining P250 in each of the five cash registers) 5. Cash in bank established as sinking fund 6. Undeposited cash collections (including one check for P400 dated Jan. 2, 2020) 7. Cash deposited with a government agency as bidder's bonds 8. Cash advances for travelling salesmen 9. Cash in bank (under receivership) 10. Cash for meter deposit with a public utility (Meralco) Exercise 1-3 P100,000 20,000 1,000 1,230 40,000 REQUIRED: 1. At what amount should cash as a current asset appear in the balance sheet? 2. How will the other accounts be reported? accounts 5. Change fund 6. Promissory note from cashier with no due date 12,400 7. Currency and coins per count 8. Cash in bank (outstanding checks amounting to…arrow_forward
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