HW 8 chapter 8

Description

I want solve these five problems BUS 120

Unformatted Attachment Preview

11/7/23, 11:07 AM
HW 8 – Chapter 8-mohamed abdullah
Instructor: Chris O’Byrne
Course: BUS 120 – Financial Acct – Fall 2022 – Assignment: HW 8 – Chapter 8
Sec (1)
Student: mohamed abdullah
Date: 11/07/23
1. Anatomy Medical Center bought equipment on January 2 for $33,000. The equipment was expected to remain in service for four years
and to perform 1,240 operations. At the end of the​equipment’s useful​life, Anatomy estimates that its residual value will be $2,000. The
equipment performed 124 operations the first​year, 372 the second​year, 496 the third​year, and 248 the fourth year.
Read the requirements1.
Requirement 1. Prepare a schedule of depreciation expense per year for the equipment under the three depreciation methods. After two
years under​double-declining balance​depreciation, the company switched to the​straight-line method.
Year
Straight-Line
Units of
Double-Declining
Production
Balance
1
2
3
4
Total
Requirement 2. Which method most closely tracks the wear and tear on the​equipment?
The (1)
method most closely tracks the wear and tear on the equipment.
Requirement 3. Which method would Anatomy prefer to use for income tax purposes in the first years of the​equipment’s life? Explain in
detail why a taxpayer would prefer this method.
Anatomy would prefer to use the (2)
produces the (3)
method for income tax purposes in the first years of the​equipment’s life because it
taxable income.
1: Requirements
1.
Prepare a schedule of depreciation expense per year for the equipment under the three depreciation methods. After two years
under​double-declining balance​depreciation, the company switched to the​straight-line method.
2.
Which method most closely tracks the wear and tear on the​equipment?
3.
Which method would Anatomy prefer to use for income tax purposes in the first years of the​equipment’s life? Explain in detail why
a taxpayer would prefer this method.
(1)
double-declining balance
(2)
double-declining balance
straight-line
straight-line
units of production
units of production
https://xlitemprod.pearsoncmg.com/api/v1/print/highered
(3)
highest
lowest
1/1
11/7/23, 11:07 AM
HW 8 – Chapter 8-mohamed abdullah
Instructor: Chris O’Byrne
Course: BUS 120 – Financial Acct – Fall 2022 – Assignment: HW 8 – Chapter 8
Sec (1)
Student: mohamed abdullah
Date: 11/07/23
2. Stonington Freight purchased a building for $1,000,000 and depreciated it on a​straight-line basis over a 30​-year period. The estimated
residual value was $130,000. After using the building for 15​years, Stonington realized that wear and tear on the building would force the
company to replace it before 30 years. Starting with the sixteenth​year, Stonington began depreciating the building over a revised total life
of 20 years and increased the estimated residual value to $185,000. Record depreciation expense on the building for years 15 and 16. ​
(Record debits​first, then credits. Exclude explanations from all journal​entries.)
Record the journal entry for year 15.
Journal Entry
Date
Accounts
Debit
Credit
Debit
Credit
(1)
(2)
(3)
(4)
Record the journal entry for year 16.
Journal Entry
Date
Accounts
(5)
(6)
(7)
(8)
(1)
Accumulated depreciation, building
Cash
Depreciation expense, building
(2)
Accumulated depreciation, building
Cash
Depreciation expense, building
(3)
Accumulated depreciation, building
Cash
Depreciation expense, building
(4)
Accumulated depreciation, building
Cash
Depreciation expense, building
(5)
Accumulated depreciation, building
Cash
Depreciation expense, building
https://xlitemprod.pearsoncmg.com/api/v1/print/highered
Note payable
Service revenue
Supplies expense
Note payable
Service revenue
Supplies expense
Note payable
Service revenue
Supplies expense
Note payable
Service revenue
Supplies expense
Note payable
Service revenue
Supplies expense
1/2
11/7/23, 11:07 AM
(6)
Accumulated depreciation, building
Cash
Depreciation expense, building
(7)
Accumulated depreciation, building
Cash
Depreciation expense, building
(8)
Accumulated depreciation, building
Cash
Depreciation expense, building
https://xlitemprod.pearsoncmg.com/api/v1/print/highered
HW 8 – Chapter 8-mohamed abdullah
Note payable
Service revenue
Supplies expense
Note payable
Service revenue
Supplies expense
Note payable
Service revenue
Supplies expense
2/2
11/7/23, 11:08 AM
HW 8 – Chapter 8-mohamed abdullah
Instructor: Chris O’Byrne
Course: BUS 120 – Financial Acct – Fall 2022 – Assignment: HW 8 – Chapter 8
Sec (1)
Student: mohamed abdullah
Date: 11/07/23
3. Assume that Henry ​Corporation’s comparative balance sheet reported these​amounts:
1​(Click on the icon to view the​amounts.)
Requirement
1. Assume that on January​1, 2018​, Henry sold ​one-half of its plant and equipment for $230,000 in cash. Journalize this transaction for
Henry. ​(Record debits​first, then credits. Exclude explanations from any journal​entries.)
Journal Entry
Date
Accounts
Debit
Credit
(1)
Jan 1
(2)
(3)
(4)
(5)
1: Data Table
December 31
2017
2016
Plant and equipment . . . . . . . . . . . . . $
605,000 $
574,000
Less: Accumulated depreciation . . .
165,000
160,000
Net plant and equipment . . . . . . . . . . $
440,000 $
414,000
(1)
Accumulated depreciation, plant and equipment
Cash
Depreciation expense
(2)
Accumulated depreciation, plant and equipment
Cash
Depreciation expense
(3)
Accumulated depreciation, plant and equipment
Cash
Depreciation expense
(4)
Accumulated depreciation, plant and equipment
Cash
Depreciation expense
(5)
Accumulated depreciation, plant and equipment
Cash
Depreciation expense
https://xlitemprod.pearsoncmg.com/api/v1/print/highered
Gain on sale of assets
Loss on sale of assets
Plant and equipment
Gain on sale of assets
Loss on sale of assets
Plant and equipment
Gain on sale of assets
Loss on sale of assets
Plant and equipment
Gain on sale of assets
Loss on sale of assets
Plant and equipment
Gain on sale of assets
Loss on sale of assets
Plant and equipment
1/1
11/7/23, 11:10 AM
HW 8 – Chapter 8-mohamed abdullah
Student: mohamed abdullah
Date: 11/07/23
Instructor: Chris O’Byrne
Course: BUS 120 – Financial Acct – Fall 2022 – Assignment: HW 8 – Chapter 8
Sec (1)
4. Regal​, ​Corp,. aggressively acquires other companies. Assume that Regal​, ​Corp., purchased Lucas, Inc.​, for $2,025,000 cash. The market
value of Lucas​’s assets is $2,800,000​, and it has liabilities with a market value of $925,000.
Read the requirements1.
Requirement 1. Compute the cost of goodwill purchased by Regal​, Corp.
Cost of goodwill purchased:
(1)
Less: Market value of Lucas net assets:
(2)
Less:
(3)
(4)
Cost of goodwill purchased
Requirement 2. Record the purchase of Lucas, Inc.​, by Regal​, Corp. ​(Record debits​first, then credits. Exclude explanation from any
journal​entry.)
Journal Entry
Date
Accounts
Debit
Credit
(5)
(6)
(7)
(8)
(9)
1: Requirements
1. Compute the cost of goodwill purchased by Regal​, Corp.
2. Record the purchase of Lucas, Inc.​, by Regal​, Corp.
(1)
Purchase price paid for Lucas, Inc.
Lucas liabilities
Market value of Lucas assets
Market value of Lucas net assets
(2)
Purchase price paid for Lucas, Inc.
Lucas liabilities
Market value of Lucas assets
Market value of Lucas net assets
(3)
Purchase price paid for Lucas, Inc.
Lucas liabilities
Market value of Lucas assets
Market value of Lucas net assets
https://xlitemprod.pearsoncmg.com/api/v1/print/highered
1/2
11/7/23, 11:10 AM
(4)
HW 8 – Chapter 8-mohamed abdullah
Purchase price paid for Lucas, Inc.
Lucas liabilities
Market value of Lucas assets
Market value of Lucas net assets
(5)
Assets (Cash, Receivables, Inventories, Plant assets)
Cash
Goodwill
(6)
Assets (Cash, Receivables, Inventories, Plant assets)
Cash
Goodwill
(7)
Assets (Cash, Receivables, Inventories, Plant assets)
Cash
Goodwill
(8)
Assets (Cash, Receivables, Inventories, Plant assets)
Cash
Goodwill
(9)
Assets (Cash, Receivables, Inventories, Plant assets)
Cash
Goodwill
https://xlitemprod.pearsoncmg.com/api/v1/print/highered
Liabilities
Owner’s equity
Liabilities
Owner’s equity
Liabilities
Owner’s equity
Liabilities
Owner’s equity
Liabilities
Owner’s equity
2/2
11/7/23, 11:10 AM
HW 8 – Chapter 8-mohamed abdullah
Instructor: Chris O’Byrne
Course: BUS 120 – Financial Acct – Fall 2022 – Assignment: HW 8 – Chapter 8
Sec (1)
Student: mohamed abdullah
Date: 11/07/23
5. Rocky Mining paid $857,400 for the right to extract mineral assets from a 600,000​-ton mineral deposit. In addition to the purchase​price,
Rocky Mining also paid a $1,200 filing​fee, a $1,400 license fee to the state of​Colorado, and $40,000 for a geological survey of the
property. Because the company purchased the rights to the minerals​only, the company expected the asset to have zero residual value
when fully depleted. During the first​year, Rocky Mining removed and sold 30,000 tons of minerals.
Read the requirement1.
a. Using the Mineral assets​account, make the journal entry to record the purchase of the minerals.
Journal Entry
Date
Accounts
Debit
Credit
(1)
(2)
(3)
(4)
b. Using the Mineral assets​account, make the journal entry to record the payment of fees and other costs.
Journal Entry
Date
Accounts
Debit
Credit
(5)
(6)
(7)
(8)
c. Using the Mineral assets​account, make the journal entry to record the depletion expense for the first year. ​(Round the depletion per ton
to the nearest​cent, and round the total depletion to the nearest whole​dollar.)
Journal Entry
Date
Accounts
Debit
Credit
(9)
(10)
(11)
(12)
1: Requirement
Using the Mineral assets​account, make journal entries to record the​following:
a. Purchase of the minerals
b. Payment of fees and other costs
c. Depletion expense for the first year.
​(Record debits​first, then credits. Exclude explanations from all journal​entries.)
https://xlitemprod.pearsoncmg.com/api/v1/print/highered
1/3
11/7/23, 11:10 AM
(1)
Accumulated depletion, mineral asset
Amortization expense
Cash
(2)
Accumulated depletion, mineral asset
Amortization expense
Cash
(3)
Accumulated depletion, mineral asset
Amortization expense
Cash
(4)
Accumulated depletion, mineral asset
Amortization expense
Cash
(5)
Accumulated depletion, mineral asset
Amortization expense
Cash
(6)
Accumulated depletion, mineral asset
Amortization expense
Cash
(7)
Accumulated depletion, mineral asset
Amortization expense
Cash
(8)
Accumulated depletion, mineral asset
Amortization expense
Cash
(9)
Accumulated depletion, mineral asset
Amortization expense
Cash
(10)
Accumulated depletion, mineral asset
Amortization expense
Cash
https://xlitemprod.pearsoncmg.com/api/v1/print/highered
HW 8 – Chapter 8-mohamed abdullah
Depletion expense
Mineral assets
Supplies
Depletion expense
Mineral assets
Supplies
Depletion expense
Mineral assets
Supplies
Depletion expense
Mineral assets
Supplies
Depletion expense
Mineral assets
Supplies
Depletion expense
Mineral assets
Supplies
Depletion expense
Mineral assets
Supplies
Depletion expense
Mineral assets
Supplies
Depletion expense
Mineral assets
Supplies
Depletion expense
Mineral assets
Supplies
2/3
11/7/23, 11:10 AM
(11)
Accumulated depletion, mineral asset
Amortization expense
Cash
(12)
Accumulated depletion, mineral asset
Amortization expense
Cash
https://xlitemprod.pearsoncmg.com/api/v1/print/highered
HW 8 – Chapter 8-mohamed abdullah
Depletion expense
Mineral assets
Supplies
Depletion expense
Mineral assets
Supplies
3/3

Purchase answer to see full
attachment