Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 9, Problem 9.38BP
Recording lump-sum asset purchases, depreciation, and disposals
Granny Carney Associates surveys American eating habits. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate
| Jan. 1 | Purchased office equipment, $112,000. Paid $78,000 cash and financed the remaining with a note payable. |
| Apr. 1 | Acquired land and communication equipment in a lump-sum purchase. Total cost was $41 0,000 paid in cash. An independent appraisal valued the land at $322,875 and the communication equipment at $107,625. |
| Sep. 1 | Sold a building that cost $540,000 (accumulated depreciation of $240,000 through December 31 of the preceding year). Granny Carney received $360,000 cash from the sale of the building. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $60,000. |
| Dec. 31 | Recorded depreciation as follows: Communication equipment is Office equipment is depreciated using the double-declining-balance method over five years with a $5,000 residual value. |
Record the transactions in the journal of Granny Carney Associates.
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Recording lump-sum asset purchases, depreciation, and disposals
Whitney Plumb Associates surveys American eating habits. The company’s account; include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for each asset. During 2018, Whitney Plumb completed the following transactions:
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Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation
The following events took place at Pete's Painting Company during 2016:
On January 1, Pete bought a used truck for $16,000. He added a tool chest and side racks for ladders for $5,400. The truck is expected to last four years and then be sold for $1,000. Pete uses straight-line depreciation.
On January 1, he purchased several items at an auction for $4,200. These items had fair market values as follows:
10 cases of paint trays and roller covers
$200
Storage cabinets
1,800
Ladders and scaffolding
3,600
Pete will use all of the paint trays and roller covers this year. The storage cabinets are expected to last nine years; the ladders and scaffolding, four years.
On February 1, Pete paid the city $1,476 for a three-year license to operate the business.
On September 1, Pete sold an old truck for $5,780 that had cost $14,720 when it was purchased on September 1, 2011. It was expected to last eight years and…
Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation
The following events took place at Pete's Painting Company during 2017:
a. On January 1, Pete bought a used truck for $15,000. He added a tool chest and side racks for ladders for $4,600. The truck is expected to last four years and then be sold for $1,200. Pete uses straight-line depreciation.
b. On January 1, he purchased several items at an auction for $2,925. These items had fair market values as follows:
10 cases of paint trays and roller covers
$200
Storage cabinets
900
Ladders and scaffolding
2,800
Pete will use all of the paint trays and roller covers this year. The storage cabinets are expected to last nine years; the ladders and scaffolding, four years.
c. On February 1, Pete paid the city $1,440 for a three-year license to operate the business.
d. On September 1, Pete sold an old truck for $4,280 that had cost $11,060 when it was purchased on September 1, 2012. It was expected to last eight years and have…
Chapter 9 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 9 - Prob. 1QCCh. 9 - Prob. 2QCCh. 9 - Which method almost always produces the most...Ch. 9 - A Celty Airline jet costs 28,000,000 and is...Ch. 9 - A copy machine costs 45,000 when new and has...Ch. 9 - Suppose Print and Photo Center in the preceding...Ch. 9 - Prob. 7QCCh. 9 - Prob. 8QCCh. 9 - Liberty Corporation reported beginning and ending...Ch. 9 - A truck costs 50,000 when new and has accumulated...
Ch. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - What is the difference between a capital...Ch. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - How does a business decide which depreciation...Ch. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - How is gain o r loss determined when disposing of...Ch. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - Prob. 17RQCh. 9 - Prob. 18RQCh. 9 - Prob. 19RQCh. 9 - What does it mean if an exchange of plant assets...Ch. 9 - Determining the cost of an asset Alton Clothing...Ch. 9 - Prob. 9.2SECh. 9 - Prob. 9.3SECh. 9 - Computing second-year depreciation and accumulated...Ch. 9 - Calculating partial-year depreciation On September...Ch. 9 - Prob. 9.6SECh. 9 - Prob. 9.7SECh. 9 - Discarding an asset On May 31, 2016, Choice...Ch. 9 - Selling an asset at gain or loss Mill Creek Golf...Ch. 9 - Selling an asset at gain or loss Pelman Company...Ch. 9 - Accounting for depletion of natural resources...Ch. 9 - Accounting for an intangible asset On March 1,...Ch. 9 - Prob. 9.13SECh. 9 - Prob. 9.14SECh. 9 - Prob. 9.15SECh. 9 - Prob. 9.16SECh. 9 - Prob. 9.17ECh. 9 - Making a lump-sum purchase of assets Dearwood...Ch. 9 - Prob. 9.19ECh. 9 - Computing depreciation-three methods Crackling...Ch. 9 - Changing an asset's useful life and residual value...Ch. 9 - Recording partial-year depreciation and sale of an...Ch. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Prob. 9.25ECh. 9 - Prob. 9.26ECh. 9 - Computing asset turnover ratio Snap Dragon Photo...Ch. 9 - Prob. 9.28ECh. 9 - Measuring asset cost, units-of-production...Ch. 9 - Prob. 9.30APCh. 9 - Determining asset cost, recording first-year...Ch. 9 - Recording lump-sum asset purchases, depreciation,...Ch. 9 - Prob. 9.33APCh. 9 - Prob. 9.34APCh. 9 - Journalizing partial-year depreciation and asset...Ch. 9 - Prob. 9.36BPCh. 9 - Determining asset cost, recording rust-year...Ch. 9 - Recording lump-sum asset purchases, depreciation,...Ch. 9 - Prob. 9.39BPCh. 9 - Prob. 9.40BPCh. 9 - Journalizing partial-year depreciation and asset...Ch. 9 - Prob. 9.42CPCh. 9 - Western Bank Trust purchased land and a building...Ch. 9 - Prob. 9.1CTFCCh. 9 - Prob. 9.1CTFSCCh. 9 - In 150 words or fewer, explain the different...
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