- •108. On July 1, 2006, Jekel & Hyde Inc. Purchased land and incurred other costs relative to the construction of a new warehouse. A summary of economic activities is listed below:
- •Required:
- •Indicate the accounts that would be affected by the above transactions and the resulting balance in each account. Apply the interest on the construction loan to the cost of the building only.
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •In its 2004 annual report to shareholders, Boston Beer Co. Disclosed the following footnote:
- •E. Property, Plant and Equipment
- •128. Use a t- account to show the balances and changes during 2004 in Boston Beer's: Property, Plant and Equipment account and its Accumulated depreciation—Property, Plant & equipment account.
- •Required:
- •130. Use a t- account to show the balances and changes during 2004 in Plank Breweries:
- •Note 4 Property, Plant and Equipment
- •100. A summary of Klugman Company's December 31, 2006, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group:
- •101. A summary of London Fashion's December 31, 2006, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group:
- •114. Is there any evidence in Winchester's disclosures above that are consistent with earnings management?
- •Required:
- •121. Is there any evidence in hp's disclosures above that are consistent with earnings management?
- •100. Required:
- •101. Required:
- •104. Required:
- •105. Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •Required:
- •127. In its 2004 annual report to shareholders, Martin Marietta Materials, Inc. Included the following in its financial statement footnotes:
- •Note e: property, plant and equipment, net
- •In another footnote, the company reported:
127. In its 2004 annual report to shareholders, Martin Marietta Materials, Inc. Included the following in its financial statement footnotes:
Note e: property, plant and equipment, net
|
December 31 |
|
|
|
|
|
(in thousands) |
2004 |
|
2003 |
|
|
|
|
|
|
|
|
Land and improvements |
$ 299,729 |
|
$ 280,926 |
|
|
Mineral reserves |
190,247 |
|
184,955 |
|
|
Buildings |
85,075 |
|
80,571 |
|
|
Machinery and equipment |
1,674,476 |
|
1,611,403 |
|
|
Construction in progress |
60,010 |
|
47,610 |
|
|
|
2,309,537 |
|
2,205,465 |
|
|
Less allowances for |
|
|
|
|
|
depreciation and |
|
|
|
|
|
depletion |
(1,244,322 |
) |
(1,163,033 |
) |
|
Total |
$ 1,065,215 |
|
$ 1,042,432 |
|
In another footnote, the company reported:
Depreciation, depletion and amortization were as follows:
|
Years ended December 31 |
|
|
|
(in thousands) |
2004 |
2003 |
|
Depreciation |
$ 121,477 |
$ 126,829 |
|
Depletion |
6,019 |
6,261 |
|
Amortization |
5,363 |
6,516 |
Finally, the company stated the following among its accounting policies: "Depletion of mineral deposits is calculated over estimated recoverable quantities, principally by the units-of-production method."
Required:
Compute the percentage of estimated recoverable quantities of mineral deposits depleted in 2004.
Answer:
Based on ending balance of mineral deposits,
2004: % of recoverable quantities = $6,019/$190,247 = 3.2%