- •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:
Required:
Prepare the journal entries for these transactions.
Answer:
|
(a.) |
Equipment |
80,747 |
|
|
|
Discount on notes payable |
19,253 |
|
|
|
Notes payable |
|
80,000 |
|
|
Cash |
|
20,000 |
|
|
|
|
|
|
(b.) |
Land |
46,000 |
|
|
|
Discount on notes payable |
14,000 |
|
|
|
Cash |
|
10,000 |
|
|
Notes payable |
|
50,000 |
Learning Objective: 3 Level of Learning: 3
116. Wendell Corporation exchanged an old truck and $25,500 cash for a new truck. The old truck had a book value of $6,000 and a market value of $7,700.
Required:
Prepare the journal entry to record the exchange.
Answer:
|
Truck (new) |
33,200 |
|
|
Gain |
|
1,700 |
|
Cash |
|
25,500 |
|
Truck (old), net |
|
6,000 |
Learning Objective: 6 Level of Learning: 3
117. Kerry, Inc. exchanged land for a front-end loader and cash of $8,000. The land had a book value of $55,000 and a market value of $60,000.
Required:
Prepare the journal entry to record the exchange.
Answer:
|
Equipment |
68,000 |
|
|
Gain |
|
5,000 |
|
Cash |
|
8,000 |
|
Land |
|
55,000 |
Learning Objective: 6 Level of Learning: 3
118. Peanut Corporation exchanged land for a front-end loader and cash of $6,500. The land had a book value of $45,000 and a market value of $34,000.
Required:
Prepare the journal entry to record the exchange.
Answer:
|
Equipment |
40,500 |
|
|
Loss |
11,000 |
|
|
Cash |
|
6,500 |
|
Land |
|
45,000 |
Learning Objective: 6 Level of Learning: 3
119. Ford Inc. exchanged land and $7,500 cash for material handling equipment. The land had a book value of $75,000 and a market value of $105,000.
Required:
Prepare the journal entry to record the exchange.
Answer:
|
Equipment |
112,500 |
|
|
Gain |
|
30,000 |
|
Cash |
|
7,500 |
|
Land |
|
75,000 |
Learning Objective: 6 Level of Learning: 3
120. Walker Corporation exchanged land and $4,500 cash for material handling equipment. The land had a book value of $45,000 and a market value of $58,000.
Required:
Prepare the journal entry to record the exchange.
Answer:
|
Equipment |
62,500 |
|
|
Gain |
|
13,000 |
|
Cash |
|
4,500 |
|
Land |
|
45,000 |
Learning Objective: 6 Level of Learning: 3
121. Cheney Company sold a 20-ton mechanical draw press for $60,000. The old draw press cost $77,000 and had a net book value of $55,000.
Required:
Prepare the journal entry to record the disposition.
Answer:
|
Cash |
60,000 |
|
|
Accumulated depreciation |
22,000 |
|
|
Equipment |
|
77,000 |
|
Gain on disposal of equipment |
|
5,000 |
Learning Objective: 6 Level of Learning: 3
122. McLean Mfg. Company sold a three-speed lathe for $24,000 cash. The lathe cost $66,200 and had a net book value of $23,200.
Required:
Prepare the journal entry to record the sale.
Answer:
|
Cash |
24,000 |
|
|
Accumulated depreciation |
43,000 |
|
|
Equipment |
|
66,200 |
|
Gain |
|
800 |
Learning Objective: 6 Level of Learning: 3
123. Champion Industries exchanged a dust-scrubbing piece of equipment for another version of the same type of equipment and received $12,000 cash. The old dust scrubber cost $76,200 and had a net book value of $54,500. The new dust scrubber had a fair market value of $58,500.