Intermediate Accounting

3 Excel spreadsheets in 1 workbook

 

You are a staff accountant in a CPA firm. Your manager has asked you to provide a report containing accounting information on the following 3 clients:

Global Inc. purchased a machine and incurred the following expenditures:

Purchase price

$20,000

Freight costs

$1,000

Sales tax

$2,000

Insurance on shipment

$200

Insurance for the first year on the machine

$500

Installation of the machine

$2,000

  • Calculate the cost to be capitalized.
  • Make an entry that will show which expenses will be capitalized when recording the machine on the books.
  • Show the entry that will be recorded to expense the cost that will not be capitalized.

Brands Resources traded an old machine for a new machine. The book value of the old machine was $150,000 (original cost $320,000, less accumulated depreciation of $170,000). The fair value was $180,000. Brands Resources paid $20,000 to complete the exchange.

  • Prepare the journal entry to record the exchange.

Reliable Company purchased a machine on January 1, 2008 at a net cost of $85,000. At the end of the 4-year life, it expects the machine will have a salvage value of $5,000. It also estimates that the machine will run for 10,000 hours during its 4-year life. The company has a fiscal year that ends on December 31.

Year

Machine hours

2008

2,000

2009

3,000

2010

1,000

2011

4,000

  • Calculate the depreciation under the straight line method.
  • Calculate the depreciation under the double declining method.
  • Calculate the depreciation under the units of production method.
#Essaywriting #Academicwriting #Assignmenthelp #Nursingassignment #Nursinghomework #Psychologyassignment #Physicsassignment #Philosophyassignment #Religionassignment #History #Writing #writingtips #Students #universityassignment #onlinewriting #savvyessaywriters #onlineprowriters #assignmentcollection #excelsiorwriters #writinghub #study #exclusivewritings #myassignmentgeek #expertwriters #art #transcription #grammer #college #highschool #StudentsHelpingStudents #studentshirt #StudentShoe #StudentShoes #studentshoponline #studentshopping #studentshouse #StudentShoutout #studentshowcase2017 #StudentsHub #studentsieuczy #StudentsIn #studentsinberlin #studentsinbusiness #StudentsInDubai #studentsininternational #accountingassignmenthelp #accountingassignment #assignmenthelp #buyaccountingassignment #accountingassignmentwriter #domyassignment #assignmentguide #expertwriters