DAC Accounting Worksheet

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education.wiley.com 6 WileyPLUS (new) Question 1 of 19 < 07 1.5 Current Attempt in Progress X Your answer is incorrect. Benedict Company incurred the following costs. Indicate to which account Benedict would debit each of the costs. No. Transactions Amount Account 1. Sales tax on factory machinery purchased $5,000 Insurance Expense 2. Painting of and lettering on truck immediately upon purchase 700 Prepaid Insurance 3. Installation and testing of factory machinery 2,000 Architect's Fees 4. Real estate broker's commission on land purchased 3,500 Architect's Fees 5. Insurance premium paid for first year's insurance on new truck 880 Equipment 6. Cost of landscaping on property purchased 7,200 Insurance Expense 7. Cost of paving parking lot for new building constructed 17,900 Prepaid Insurance 8. Cost of clearing, draining, and filling land 13,300 Buildings 9. Architect's fees on self-constructed building 10,000 Land Improvements eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer Done < > АА education.wiley.com 6 WileyPLUS (new) Question 1 of 19 < > 0 / 1.5 View Policies Show Attempt History Current Attempt in Progress X Your answer is incorrect. Benedict Company incurred the following costs. Indicate to which account Benedict would debit each of the costs. No. Transactions Amount Account 1. Sales tax on factory machinery purchased $ 5,000 Insurance Expense 2. Painting of and lettering on truck immediately upon purchase 700 Prepaid Insurance 3. 3 Installation and testing of factory machinery 2,000 Architect's Fees 4. Real estate broker's commission on land purchased 3,500 Architect's Fees 5. Insurance premium paid for first year's insurance on new truck 880 Equipment . 6. Cost of landscaping on property purchased 7,200 Insurance Expense 7. Cost of paving parking lot for new building constructed 17,900 Prepaid Insurance 8. Cost of clearing, draining, and filling land 13,300 Buildings 9. Architect's fees on self-constructed building 10,000 Land Improvements e Textbook and Media Done < > АА education.wiley.com 6 WileyPLUS (new) Question 2 of 19 < > - / 1.5 View Policies Current Attempt in Progress On March 1, 2020, Pharoah Company acquired real estate on which it planned to construct a small office building. The company paid $ 95,000 in cash. An old warehouse on the property was razed at a cost of $ 8,900; the salvaged materials were sold for $ 1,600. Additional expenditures before construction began included $ 1,900 attorney's fee for work concerning the land purchase, $ 5,500 real estate broker's fee, $ 7,200 architect's fee, and $ 14,700 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Done < > АА education.wiley.com 6 WileyPLUS (new) Question 4 of 19 < > - / 1.5 View Policies Current Attempt in Progress Metlock, Inc. sells equipment on September 30, 2020, for $16,700 cash. The equipment originally cost $74,300 and as of January 1, 2020, had accumulated depreciation of $42,600. Depreciation for the first 9 months of 2020 is $5,350. Prepare the journal entries to (a) update depreciation to September 30, 2020, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Done < > АА education.wiley.com 6 WileyPLUS (new) Question 14 of 19 < 0 / 0.5 View Policies Show Attempt History Current Attempt in Progress X This is the computation for book value. Depreciable cost is the cost of an asset less accumulated depreciation. book value of an asset less its salvage value. O cost of an asset less its salvage value. O book value of an asset. e Textbook and Media Save for Later Attempts: 1 of 3 used Submit Answer 9:25 AM Mon Nov 1 100% Done< > АА education.wiley.com Question 6 of 19 < > -/ View Policies Current Attempt in Progress The cost of land includes all of the following except accrued property taxes. O closing costs. Oreal estate brokers' commissions. O parking lots. e Textbook and Media Save for Later Attempts: 0 of 3 used Submi Done < > АА education.wiley.com 6 WileyPLUS (new) Question 7 of 19 < > - / 0.5 View Policies Current Attempt in Progress Costs incurred to increase the operating efficiency or useful life of a plant asset are referred to as ordinary repairs. expense expenditures. revenue expenditures. O capital expenditures. e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Done < > АА education.wiley.com 6 WileyPLUS (new) Question 18 of 19 < 07 0.5 View Policies Show Attempt History Current Attempt in Progress X Your answer is incorrect. If a plant asset is sold before it is fully depreciated, only a gain on disposal can occur. only a loss on disposal can occur. O either a gain or a loss can occur. O neither a gain nor a loss can occur. e Textbook and Media Save for Later Attempts: 2 of 3 used Submit Answer education.wiley.com 6 WileyPLUS (new) Question 5 of 19 < - / 1.5 Presented below are selected transactions at Pina Colada Corp. for 2020. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $ 63,600 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2017. The computer cost $ 41,400. It had a useful life of 5 years with no salvage value. The computer was sold for $ 14,800. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $ 41,220. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Pina Colada Corp. uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Do not round intermediate calculations.) Date Account Titles and Explanation Debit Crec (To record depreciation to date of disposal) June 30 education.wiley.com 6 WileyPLUS (new) Question 5 of 19 < > - / 1.5 (To record depreciation to date of disposal) June 30 Jan. 1 June 30 Dec. 31 :) (To record depreciation to date of disposal) Dec. 31 (To record retirement of truck) e Textbook and Media Save for Later education.wiley.com 6 WileyPLUS (new) Question 5 of 19 < > - / 1.5 (To record depreciation to date of disposal) (To record sale of computer) (To record depreciation to date of disposal) (To record retirement of truck) e Textbook and Media Save for Later Done < > AA education.wiley.com Explain how to account for the disposal of plant assets. Companies dispose of plant assets that are no longer useful to them. Illustration 9.18 shows the three ways in which companies make plant asset disposals. Piper Co. Lowy Co Piper Co. Lowy Co. $ Retirement Equipment is scrapped or discarded. Sale Equipment is sold to another party Exchange Existing equipment is traded for new equipment. ILLUSTRATION 9.18 Methods of plant asset disposal Whatever the disposal method, the company must determine the book value of the plant asset at the disposal date to determine the gain or loss. Recall that the book value is the difference between the cost of the plant asset and the accumulated depreciation to date. If the disposal does not occur on the first day of the year, the company must record depreciation for the fraction of the year to the date of disposal. The company then eliminates the book value by reducing (debiting) Accumulated Depreciation for the total depreciation associated with that asset to the date of disposal and reducing (crediting) the asset account for the cost of the asset. In this chapter, we examine the accounting for the retirement and sale of plant assets. In the appendix to the chapter, we discuss and illustrate the accounting for exchanges of plant assets. Retirement of Plant Assets To illustrate the retirement of plant assets, assume that Hobart Company retires its computer printers, which cost $32,000. The accumulated depreciation on these printers is $32,000. The equipment, therefore, is fully depreciated (zero book value). The entry to record this retirement is as follows (see Helpful Hint). HELPFUL HINT When disposing of a plant asset, the company removes all amounts related to the asset. This includes the original cost in the asset account and the total depreciation to date in the accumulated depreciation account. 32,000 Accumulated Depreciation - Equipment Equipment (To record retirement of fully depreciated equipment) 32,000 + SE A +32,000 -32,000 Cash Flows no effect What happens if a fully depreciated plant asset is still useful to the company? In this case, the asset and 12:03 PM Mon Nov 1 98% Assignment Details ACC-001A-70049 Financial Accounting Managerial Accounting Discussion Board: Chapter 20 > and Prior Content + Administ... Due Friday, October 29, 2021 at 11:59 PM Submission Types Discussion Comment Submission & Rubric > ACC-001A-70049 Financial Accounting Valuing Long term assets Due Today at 11:59 PM Description Dz Dina Aburous Oct 20, 2021 at 10:57 AM ACC-001A-70049 Financial Accounting Chapter 9 Homework Due Today at 11:59 PM BUS-028A-70066 Business Law | Discussion Question 4 Due Friday, November 5, 2021 at 11:59 PM Under GAAP a building (e.g. $1,000,000) is initially recorded at cost and depreciated over time. If during its life the fair market value of the building drops (let's say to $800,000) the company reduces the value of the asset and records the $200,000 as an unrealized loss (in the statement of comprehensive income). However, if the fair market value increases the value on the books remains at cost or 1,000,000 and no gain is recorded. Does this remind you of something? (hint chapter 6). 险 BUS-0282-70066 Business Law | Homework Assignment for Chapter 16 Due Friday, November 5, 2021 at 11:59 PM BUS-028A-70066 Business Law | IRAC Assignment 3 Due Friday, November 5, 2021 at 11:59 PM However, under IFRS (which most the world uses) similar assets can be valued either similar to GAAP or at fair market value. If an organization chooses fair market value then it will have to adjust the value of the asset up or down (as long as there is a reliable market value). Dz ACC-001B-70054 Managerial Accounting Chapter 21 Homework Due Saturday, November 6, 2021 at 11:59... ACC-001B-70054 Managerial Accounting Chapter 21: Adaptive Practice Due Saturday, November 6, 2021 at 11:59... Here's the question: Lets take two companies, one in the US and applies GAAP. and another in Singapore and it applies the revaluation model according to IFRS. If you are comparing the financial statements of these companies (over the last couple of years) what differences would you expect to see as a result of the different valuation methods used for valuing a building? think of multiple scenarios (prices going up or down) ACC-001B-70054 Managerial Accounting Discussion Board: Chapter 21 > and Prior Content + Administ... Due Saturday, November 6, 2021 at 11:59... View Discussion ca 17 2 Dashboard DOO DOO ва Calendar O= O= To Do Notifications Inbox
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