7/25/2019 Cash Balance Per Bank
1/31
Cash balance per bank $4,287.20
Add: NSF check 597.00
Less: Bank service charge
33.10
Adjusted balance per bank
$4,851.10
Cash balance per books $4,585.20
Less: Deposits in transit 584.90
Add: Outstanding checks
917.00
Adjusted balance per books
$4,917.30
(a) What is the proper adjusted cash balance per bank?
The proper adjusted cash balance per bank
$
(b) What is the proper adjusted cash balance per books?
The proper adjusted cash balance per books
$
(c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per
books.
Cash balance per bank $4,287.20
Add: Deposits in transit 584.90
Less: Outstanding checks 917.00
= $3,955.10 adjusted balance per bank
Cash balance per books $4,585.20Less: NSF check 597.00
Less: Bank service charge 33.10
= $3,955.10 adjusted balance per books
Journal Entries:
Dr Accounts Receivable 597
Cr Cash 597
Dr Miscellaneous Expense 33.10
Cr Cash 33.10
7/25/2019 Cash Balance Per Bank
2/31
home/study/business/accounting/questions and answers/ exercise 7-12 your answer is incorrect. tryagain. ...
Question
Exercise 7-12
Your answer is incorrect. Try again.
A new accountant at Leftwich nc. is trying to identify which ofthe amounts shown be!ow shou!d be re"orted as the currentasset #$ash and cash equi%a!ents# in the year-end ba!ancesheet& as of A"ri! '(& 2(1).
1.
*+( of currency and coin in a !oc,ed box used for incidenta! cashtransactions.
2. A *1(&((( .. Treasury bi!!& due /ay '1& 2(1).
'.
*2+( of A"ri!-dated chec,s that Leftwich has recei%ed from customers butnot yet de"osited.
).
An *0 chec, recei%ed from a customer in "ayment of its A"ri! account&but "ostdated to /ay 1.
. *2&(( in the com"any#s chec,ing account.
+. *)&0(( in its sa%ings account.
7. *7 of "re"aid "ostage in its "ostage meter.
0. A *2 from the com"any rece"tionist.
(a)3hat ba!ance shou!d Leftwich re"ort as its #$ash andcash equi%a!ents# ba!ance at A"ri! '(& 2(1)4
http://www.chegg.com/http://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/7/25/2019 Cash Balance Per Bank
3/31
$ash and cash equi%a!ents ba!ance at A"ri! '(& 2(1) *44444
how transcribed image text5iew comments 61
Answer
8a%n 9o!!oruanswered this 1( hours !ater3as this answer he!"fu!4(
1+)) answers
http://www.chegg.com/homework-help/questions-and-answers/exercise-7-12-answer-incorrect-try--new-accountant-leftwich-inc-trying-identify-amounts-sh-q6176931http://www.chegg.com/homework-help/questions-and-answers/exercise-7-12-answer-incorrect-try--new-accountant-leftwich-inc-trying-identify-amounts-sh-q61769317/25/2019 Cash Balance Per Bank
4/31
home/study/business/accounting/questions and answers/ problem 7-7a castle corporation preparesmonthly ...
Question
Problem 7-7A
$ast!e $or"oration "re"ares month!y cash budgets. :ere are re!e%ant data fromo"erating budgets for 2(1).
;anuary
7/25/2019 Cash Balance Per Bank
5/31
. *1&(((@
7/25/2019 Cash Balance Per Bank
6/31
Add?
Le
ss?
* *
5iew comments 62
Answer
/ason Lewis$hegg ex"ert answered this more than 1 day !ater3as this answer he!"fu!4(
(1&1) answers
http://www.chegg.com/homework-help/questions-and-answers/problem-7-7a-castle-corporation-prepares-monthly-cash-budgets-relevant-data-operating-budg-q4996714http://www.chegg.com/homework-help/questions-and-answers/problem-7-7a-castle-corporation-prepares-monthly-cash-budgets-relevant-data-operating-budg-q49967147/25/2019 Cash Balance Per Bank
7/31
7/25/2019 Cash Balance Per Bank
8/31
home/study/business/accounting/questions and answers/ presented below are the data on three
promissory ...
Duestion
8resented be!ow are the data on three "romissory notes.etermine the missing amounts 6round answers to ( decima!"!aces& e.g. 12 Assume !ength of year '+( days.
ate ofCote Terms /aturity 8rinci"a! Annua!nterest Tota! nterest ate Bate
A"ri! 1 +( days 4 *+((&((( =F
http://www.chegg.com/http://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archive7/25/2019 Cash Balance Per Bank
9/31
4;u!y 2 '( days 4 =(&((( 4
*+((/arch 7 + months 4 12(&((( 1(F
4
$omment
Best Answer
o
o
o
o
o
u"erBabbit2=20answered this 1 hour !ater3as this answer he!"fu!4
'
(
+&00) answers
5ery confusing "ost. ti!! am trying..:o"e got it right
1. Tota! nt 8rinic"a!Gnt BateG/aturity "eriodH'+( +((&(((G=FG+(H'+( =(((
2. Bate nt G'+(H68rinci"a!G/aturity "eriod +((G'+(H6=((((G'( 0F
'. Tota! nt 8rinic"a!Gnt BateG/aturity "eriodH'+( 12(&(((G1(FG+H12 +(((
5iew comments 61
http://www.chegg.com/homework-help/questions-and-answers/presented-data-three-promissory-notes-determine-missing-amounts-round-answers-0-decimal-pl-q1614030http://www.chegg.com/homework-help/questions-and-answers/presented-data-three-promissory-notes-determine-missing-amounts-round-answers-0-decimal-pl-q1614030http://www.chegg.com/homework-help/questions-and-answers/presented-data-three-promissory-notes-determine-missing-amounts-round-answers-0-decimal-pl-q1614030http://www.chegg.com/homework-help/questions-and-answers/presented-data-three-promissory-notes-determine-missing-amounts-round-answers-0-decimal-pl-q16140307/25/2019 Cash Balance Per Bank
10/31
More Answers
Anonymousanswered this more than 1 day !ater3as this answer he!"fu!4
2
(
7/25/2019 Cash Balance Per Bank
11/31
1$om"ute '/Ks recei%ab!e turno%er. (Round answers to 1decimal place, e.g. 12.5.!
Accounts recei%ab!e turno%er ratio times
2$om"ute '/Ks a%erage co!!ection "eriod for accountsrecei%ab!e in days. (Round answer to 1 decimal place,e.g. 12.5. "se 35 days for calculation.!
A%erage co!!ection "eriod days
$omment
Ex"ert Answer
Anonymousanswered this 2 hours !ater
3as this answer he!"fu!4
2
(
+) answers
1 Accounts Becei%ab!e turno%er ratio Cet annua! credit sa!e H 6beginning accountsrecei%ab!eMending accounts recei%ab!eH2
*21.= bi!!ionH 6*'.)' M *'.1 bi!!ionH2
+.'1 times
2 a%erage co!!ection "eriod a%erage accounts recei%ab!e H 6Annua! sa!esH'+days
a%erage accounts recei%ab!e '.)'M'.1 bi!!ion H 2
* '.)7 bi!!ion
a%erage co!!ection "eriod * '.)7 H (.(+
7.0 days
http://www.chegg.com/homework-help/questions-and-answers/suppose-2014-financial-statements-3m-company-report-net-sales-219-billion-accounts-receiva-q9265665http://www.chegg.com/homework-help/questions-and-answers/suppose-2014-financial-statements-3m-company-report-net-sales-219-billion-accounts-receiva-q92656657/25/2019 Cash Balance Per Bank
12/31
Duestion
Exercise 0-0
These transactions too, "!ace for N!a%ine $o.
"#$
1.
/ay1
Becei%ed a *&((& 12-month& 7F note in exchange for an outstandingaccount recei%ab!e from . Booney.
2
.
ec.
'1 Accrued interest re%enue on the . Booney note.
"#$%
'.
/ay1
Becei%ed "rinci"a! "!us interest on the . Booney note. 6Co interest hasbeen accrued since ecember '1& 2(1'.
Becord the transactions in the genera! Oourna!. The com"anydoes not ma,e entries to accrue interest exce"t at ecember'1.(#redit account titles are automatically indentedwhen amount is entered. $o not indent manually.
Round answers to 0 decimal places, e.g. 5,250.!
$omment
Answer
Anonymousanswered this '' minutes !ater
3as this answer he!"fu!4
(
(
7 answers
&'no
Date Particulars Debit()
!reit
http://www.chegg.com/homework-help/questions-and-answers/exercise-8-8-transactions-took-place-glavine-co-2013-1-may-1-received-5-500-12-month-7-not-q7721849http://www.chegg.com/homework-help/questions-and-answers/exercise-8-8-transactions-took-place-glavine-co-2013-1-may-1-received-5-500-12-month-7-not-q77218497/25/2019 Cash Balance Per Bank
13/31
()
1/ay1&2(1' Cote Becei%ab!e ((
To Accounts Becei%ab!e -.Booney ((
6>eing Cote for .BooneyPs>a!ance
2 ec'1&2(1' nterest Becei%ab!e 2+.+7
To nterest2+.+7
6>eing nterest accrued
'/ay'1&2(1) >an, AHc 00
To Cote Becei%ab!e ((
To nterest Becei%ab!e2+.+7
To nterest
120.
''
6 $o!!ect Cote - .Booney
These transactions took place for Glavine Co.
2013
7/25/2019 Cash Balance Per Bank
14/31
1.May 1
Received a $5,000, 12-month, 6% note in exchange for an outstanding account receivable from
S. Rooney.
2.Dec. 31
Accrued interest revenue on the S. Rooney note.
2014
3.May 1
Received principal plus interest on the S. Rooney note. (No interest has been accrued since
December 31, 2013.)
Record the transactions in the general journal. The company does not make entries to accrue
interest except at December 31.(Credit account titles are automatically indented when amount is
entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,250.)
Dr Notes receivable $5,000
Cr Accounts receivable $5,000
Dec. 31
Dr Interest receivable $200 [$5,000 x 6% x 8/12]
Cr Interest revenue $200
May 1
Dr Cash $5,300
Cr Notes receivable $5,000
Cr Interest receivable $200
Cr Interest revenue $100 [$5,000 x 6% x 4/12]
On January 1, 2012, Sather Company had Accounts Receivable $56,800 and Allowance for
Doubtful Accounts $5,690. Sather Company prepares financial statements annually and uses a
perpetual inventory system. During the year the following selected transactions occurred.
Jan. 5 Sold $8,200 of merchandise to Noel Company, terms n/30. Cost of the merchandise sold
was $5,210.
Feb. 2 Accepted a $8,200, 4-month, 9% promissory note from Noel Company for balance due.
Feb. 12 Sold $14,160 of merchandise costing $6,420 to Lima Company and accepted Lima's
$14,160, 2-month, 10% note for the balance due.
Feb. 26 Sold $6,020 of merchandise costing $4,090 to Hubbard Co., terms n/10.
Apr. 5 Accepted a $6,020, 3-month, 8% note from Hubbard Co. for balance due.
Apr. 12 Collected Lima Company note in full.
June 2 Collected Noel Company note in full.
June 15 Sold $2,600 of merchandise costing $1,520 to Matthews Inc. and accepted a $2,600, 6-month, 12% note for the amount due.
7/25/2019 Cash Balance Per Bank
15/31
Jan. 5 Sold $8,200 of merchandise to Noel Company, terms n/30. Cost of the merchandise sold
was $5,210.
Dr Accounts receivable (AR) $8,200
Cr Sales $8,200
Dr COGS $5,210
Cr Merchandise inventory (MI) $5,210
Feb. 2 Accepted a $8,200, 4-month, 9% promissory note from Noel Company for balance due.
Dr Notes receivable (NR) $8,200
Cr AR $8,200
Feb. 12 Sold $14,160 of merchandise costing $6,420 to Lima Company and accepted Lima's
$14,160, 2-month, 10% note for the balance due.
Dr NR $14,160
Cr Sales $14,160
Dr COGS $6,420
Cr MI $6,420
Feb. 26 Sold $6,020 of merchandise costing $4,090 to Hubbard Co., terms n/10.
Dr AR $6,020
Cr Sales $6,020
Dr COGS $4,090
Cr MI $4,090
Apr. 5 Accepted a $6,020, 3-month, 8% note from Hubbard Co. for balance due.
Dr NR $6,020
Cr AR $6,020
Apr. 12 Collected Lima Company note in full.
Dr Cash $14,396
Cr NR $14,160
Cr Interest revenue $236 ($14,160 x 10% x 2/12)
June 2 Collected Noel Company note in full.
Dr Cash $8,446
Cr NR $8,200
Cr Interest revenue $246 ($8,200 x 9% x 4/12)
June 15 Sold $2,600 of merchandise costing $1,520 to Matthews Inc. and accepted a $2,600, 6-
month, 12% note for the amount due.
7/25/2019 Cash Balance Per Bank
16/31
Dr NR $2,600
Cr Sales $2,600
Dr COGS $1,520
Cr MI $1,520
On January 1, 2014, Oswalt Company had Accounts Receivable of
$54,200 and Allowance for Doubtful Accounts of $3,700. Oswalt
Company prepares financial statements annually. During the year, the
following selected transactions occurred.
1. Jan. 5 Sold $4,000 of merchandise to Ross Company, terms
n/30.2. Feb. 2 Accepted a $4,000, 4-month, 9% promissory note
from Ross Company for balance due.
3. 12 Sold $12,000 of merchandise to Cano Company and
accepted Canos $12,000, 2-month, 10% note for the balance due.
4. 26 Sold $5,200 of merchandise to Meachum Co., terms n/10.
5. Apr. 5 Accepted a $5,200, 3-month, 8% note from Meachum
Co. for balance due.
6. 12 Collected Cano Company note in full.7. June 2 Collected Ross Company note in full.
8. 15 Sold $2,000 of merchandise to Glanvile Inc. and accepted
a $2,000, 6-month, 12% note for the amount due.
Journalize the transactions.
Please use the format I have provided in the photo below:
On January 1, 2014, Oswalt Company had Accounts Receivable of $54,200 and Allowance for
Doubtful Accounts of $3,700. Oswalt Company prepares financial statements annually. Duringthe year, the following selected transactions occurred.
*ournal +ntries1. Jan. 5 Sold $4,000 of merchandise to Ross Company, terms n/30.
January 5
Accounts Receivables (Ross Company) A/c Dr. $4,000
To Sales Revenue A/c Cr. $4,000
7/25/2019 Cash Balance Per Bank
17/31
2. Feb. 2 Accepted a $4,000, 4-month, 9% promissory note from Ross Company for
balance due.
February 2
Notes Receivables (Ross company) A/c Dr. $4,000
To Accounts Receivables (Ross Company) A/c Cr. $4000
3. 12 Sold $12,000 of merchandise to Cano Company and accepted Canos $12,000, 2-
month, 10% note for the balance due.
12
Notes Receivables (Cano Company) A/c Dr. $12,000
To Sales Revenue A/c Cr. $12,000
4. 26 Sold $5,200 of merchandise to Meachum Co., terms n/10.
26
Accounts Receivables (Meachum Co.) A/c Dr. $5,200
To Sales Revenue A/c Cr. $5,200
5. Apr. 5 Accepted a $5,200, 3-month, 8% note from Meachum Co. for balance due.
Apr. 5
Notes Receivables (Meachum Co.) A/c Dr. $5,200
To Accounts Receivables (Meachum Co.) A/c Cr. $5,200
6. 12 Collected Cano Company note in full.
12
Cash A/c Dr. $12,200
To Notes Receivables (Cano Company) A/c Cr. $12,000
To Interest Revenue A/c Cr. $ 200 ( $ 12000 *0.10* 2 month / 12 months)
7. June 2 Collected Ross Company note in full.
June 2
Bank A/c Dr. $ 4120
To Notes Receivables (Ross Company) A/c Cr. $4,000
7/25/2019 Cash Balance Per Bank
18/31
To Interest Revenues A/c Cr. $ 120 ($ 4000 * 0.09 * 4 months / 12 months)
8. 15 Sold $2,000 of merchandise to Glanvile Inc. and accepted a $2,000, 6-month, 12%
note for the amount due.
15
Note Receivables (Glanvile Inc.) A/c Dr. $2,000
To Sales Revenue A/c Cr. $2,000
home/study/business/accounting/questions and answers/ tolbert company incurs these expenditures
in purchasing ...
Duestion
To!bert $om"any incurs these ex"enditures in "urchasing atruc,? cash "rice *2)&(((@ accident insurance 6during use*2&(((@ sa!es taxes *1&(0(@ motor %ehic!e !icense *'((@ and"ainting and !ettering *1&7((.
3hat is the cost of the truc,4
The cost of the truc, *4444
$omment
Ex"ert Answer
CamanNanswered this
3as this answer he!"fu!4(
(
)&2)7 answers
tatement showingcom"utations
8articu!ars Amount
$ash8rice
http://www.chegg.com/http://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/homework-help/questions-and-answers/tolbert-company-incurs-expenditures-purchasing-truck-cash-price-24-000-accident-insurance--q11998281http://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/homework-help/questions-and-answers/tolbert-company-incurs-expenditures-purchasing-truck-cash-price-24-000-accident-insurance--q119982817/25/2019 Cash Balance Per Bank
19/31
2)&(((.((
a!es tax1&(0(.((
8ainting and Lettering1&7((.((
Tota! $ost of Truc,2+&70(.((
Cote Accident nsuranceand /otor 5ehic!e !icenseare re%enue ex"enses
Hinshaw Company purchased a new machine on October 1, 2014, at a cost of $87,200. The
company estimated that the machine has a salvage value of $8,000. The machine is expected
to be used for 70,200 working hours during its 7-year life. Compute the depreciation expense
under the straight-line method for 2014 and 2015, assuming a December 31 year-end. (Round
answers to 0 decimal places, e.g. 125.)
Depreciation per year using straight line method:
($87,200 - $8000) /7 years
, $$$%'". per yearIn 2014, it was in use for 3 months. So the depreciation allowed is:
($$$%'".)( mont/s 0 $" mont/s per year) , "1"1'27In "#$2we can epreciate t/e entire yearly amount of $$$%'".
home/study/business/economics/questions and answers/ seger company was organized on january
1. during ...
Duestion
eger $om"any was organiQed on ;anuary 1. uring the Jrstyear of o"erations& the fo!!owing "!ant asset ex"enditures and
recei"ts were recorded in random order.
http://www.chegg.com/http://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-economics-s12http://www.chegg.com/homework-help/business-economics-s12http://www.chegg.com/homework-help/questions-and-answers/economics-archivehttp://www.chegg.com/homework-help/questions-and-answers/economics-archivehttp://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-economics-s12http://www.chegg.com/homework-help/questions-and-answers/economics-archive7/25/2019 Cash Balance Per Bank
20/31
Debit
1.$ost of rea! estate "urchased as a "!ant site 6!and *2+2&07(and bui!ding *2&2'( * 200&1((
2.nsta!!ation cost of fences around "ro"erty +&=+(
'.$ost of demo!ishing bui!ding to ma,e !and suitab!e forconstruction of new bui!ding 2)&7=(
).Exca%ation costs for new bui!ding 1'&70(
.Accrued rea! estate taxes "aid at time of "urchase of rea!estate 2&))=
+.$ost of "ar,ing !ots and dri%eways '0&7((
7.ArchitectKs fees on bui!ding "!ans '&)7(
0.Bea! estate taxes "aid for the current year on !and +&+20
=.
7/25/2019 Cash Balance Per Bank
21/31
$omment
Ex"ert Answer
Anonymousanswered this
3as this answer he!"fu!4
(
(
+7= answers
8!ease see the be!ow tab!e for a!! the required answers
tem Land >ui!ding
therAccounts
AccountTit!e
162+2&07(
62&2'(
-
2 - - 6+&=+(
Land
m"ro%ements
'
- 62)&7=(
-
)61'&70(
- -
62&))=
- -
+6'0&7((
- -
7
- 6'&)7(
-
0
- - 6+&+20
8ro"erty
Tax
http://www.chegg.com/homework-help/questions-and-answers/seger-company-organized-january-1-first-year-operations-following-plant-asset-expenditures-q13385497http://www.chegg.com/homework-help/questions-and-answers/seger-company-organized-january-1-first-year-operations-following-plant-asset-expenditures-q133854977/25/2019 Cash Balance Per Bank
22/31
ex"ense
=
- 6+7&(0(
-
1(
- 12&+((
-
tem 2 - ts a !and im"ro%ement cost
tem 0 is a "ro"erty tax which has to be e%ery year
Bemaining a!! items are c!assiJed either Land or >ui!ding according to their ex"ensety"e.
home/study/business/accounting/questions and answers/ quinn company sells office equipment on
july 31, ...
Duestion
http://www.chegg.com/http://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archive7/25/2019 Cash Balance Per Bank
23/31
how transcribed image text
$omment
Ex"ert Answer
/oo!chandharmaanswered this
3as this answer he!"fu!4
1
1
)&'=+ answers
Answer3
*ournal +ntry3
(b)
!as/ Debit "72#
4oss in Disposal of plant Asset Debit $$.#
Accumulate Depreciation Debit %27.#
56ce +uipment !reit 1$%7#
Note 3 Accumulate epreciation s/all be ta8en till t/e ate of sale ofasset , (%#.2#9%1%#) , %27.#
4oss on Disposal of plant Asset , (!ost - Accumulate Dep) - &ale :alue
, (1$%7# ; %27.#) ; "72# ,$$.#
http://www.chegg.com/homework-help/questions-and-answers/quinn-company-sells-office-equipment-july-31-2014-23-570-cash-office-equipment-originally--q7729289http://www.chegg.com/homework-help/questions-and-answers/quinn-company-sells-office-equipment-july-31-2014-23-570-cash-office-equipment-originally--q77292897/25/2019 Cash Balance Per Bank
24/31
home/study/business/accounting/questions and answers/ quinn company sells office equipment on
july 31, ...
Duestion
Duinn $om"any se!!s oRce equi"ment on ;u!y '1& 2(1)& for*21&2(( cash. The oRce equi"ment origina!!y cost *00&'+(and as of ;anuary 1& 2(1)& had accumu!ated de"reciation of*)1&)0(. e"reciation for the Jrst 7 months of 2(1) is*)&00(. 8re"are the Oourna! entries to 6a u"date de"reciationto ;u!y '1& 2(1)& and 6b record the sa!e of the equi"ment.
$omment
Ex"ert Answer
E!iQabeth >rown$hegg ex"ert answered this
3as this answer he!"fu!4
(
(
1&12) answers
Jazz Company purchases a patent for $150,000 on January 2, 2010. Its estimated useful life is5 years.
(a) Prepare the journal entry to record amortization expense for the first year.
(b) Show how this patent is reported on the balance sheet at the end of the first year.
a) [You have the wrong date on your answer, the rest is right.]
Dec 31
Debit 'Amortization Expense - Patent' $ 30,000
http://www.chegg.com/http://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/homework-help/questions-and-answers/quinn-company-sells-office-equipment-july-31-2014-21-200-cash-office-equipment-originally--q9075113http://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/homework-help/questions-and-answers/quinn-company-sells-office-equipment-july-31-2014-21-200-cash-office-equipment-originally--q90751137/25/2019 Cash Balance Per Bank
25/31
Credit 'Patent' $ 30,000
----------------
b) Here's what your missing : I'll show what happens in the Patent account over the year :
. . . . . . . . Patent Account
Date . . . . . . . Amount . . . . . . . . Balance
Jan 2 . . . . . $ 150,000 Dr . . . . $ 150,000 Dr
Dec 31 . . . . $ .30,000 Cr . . . . $ 120,000 Dr
--------------------
The year-end amortization adjusting entry reduces the balance sheet 'Patent' account by
$30,000, leaving that account with a year-end balance of $ 120,000 Dr.
Question 1
SupposeNi8e Inc'reported the following plant assets and intangible
assets for the year ended May 31, 2014 (in millions): other plant assets
$961.3; land $242.9; patents and trademarks (at cost) $534.0;
machinery and equipment $2,155.9; buildings $962; goodwill (at cost)
$170.1; accumulated amortization $50.1; and accumulated
depreciation $2,263.
Prepare a partial balance sheet for Nike for these items.(-ist
%roperty, %lant and )uipment in order of -and,
uildings and )uipment.!
home/study/business/accounting/questions and answers/ presented here are selected transactions
for pine ...
Duestion
http://www.chegg.com/http://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/homework-help/questions-and-answers/accounting-archivehttp://www.chegg.com/http://www.chegg.com/homework-helphttp://www.chegg.com/homework-help/businesshttp://www.chegg.com/homework-help/business-accounting-s37http://www.chegg.com/homework-help/questions-and-answers/accounting-archive7/25/2019 Cash Balance Per Bank
26/31
8resented here are se!ected transactions for 8ine $om"any for2(1).
;an. 1
Betired a "iece of machinery that was "urchased on ;anuary 1& 2((). The
machine cost *71&((( on that date and had a usefu! !ife of 1( years withno sa!%age %a!ue.
;une
'(
o!d a com"uter that was "urchased on ;anuary 1& 2(11. The com"utercost *'(&((( and had a usefu! !ife of years with no sa!%age %a!ue. Thecom"uter was so!d for *12&(((.
ec.
'1
iscarded a de!i%ery truc, that was "urchased on ;anuary 1& 2((=. Thetruc, cost *''&)(( and was de"reciated based on an 0-year usefu! !ife witha *'&((( sa!%age %a!ue.
;ourna!iQe a!! entries required on the abo%e dates& inc!udingentries to u"date de"reciation& where a""!icab!e& on assetsdis"osed of. 8ine $om"any uses straight-!ine de"reciation.6Assume de"reciation is u" to date as of ecember '1&2(1'.
Date Account Titles an +
7/25/2019 Cash Balance Per Bank
27/31
6To record de"reciation on truc, so!d
Equi"ment '(&(((
Nain on is"os
e"reciation Ex '&0((
Accumu!ated e '&0((
Loss on is"osa
Accumu!ated e
Equi"ment ''&)((
7/25/2019 Cash Balance Per Bank
28/31
Presented below are selected transactions at Ingles Company for 2008.
Journalize all entries required on the above dates, including entries to update depreciation,
where applicable, on assets disposed of. Ingles Company uses straight-line depreciation.
(Assume depreciation is up to date as of December 31, 2007.)
Jan. 1 Retired a piece of machinery that was purchased on January 1, 1998. The machine cost
$62,000 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, 2005. The computer cost $40,000.
It had a useful life of 5 years with no salvage value. The computer was sold for $14,000.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2004. The truck cost
$39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.
1-Jan 1 08 Accum Depr $62000
Equip $62000
To retire fully depreciated machinery
2- Orig Cost $40000 - $28000 = $12000 Book Value on June 30 08Calc. $40000/5 = $8000 annual depr.
7/25/2019 Cash Balance Per Bank
29/31
No of periods in use = 3.5 (2005, 2006, 2007, and 6 months in 2008)
Total depr = $8000 x 3.5 = $28000
June 30 08 Depr Exp $4000
Accum Depr $4000
To record 6 months of current year depreciation
Book value now = $40000 - $28000 = $12000
Sold for $14000 so you have a $2000 gain on sale
June 30 08 Cash $14000
Accum Depr 28000
Gain on Sale $2000
Equip 40000
To record sale of computer on June 30 08
3. Amount of depr taken as of Dec 30 08 = $39000-3000/6 = $6000 annual depr for 5
years (2004, 2005, 2006, 2007, & 2008) = $6000 x 5
= $30000 accum depr as of Dec 30 08. Truck was discarded with $6000 undepreciated
cost remaining so a $6000 loss on disposal occured.
Dec 30 08 Depr Exp $6000
Accum Depr $6000
To record current year depreciation
Dec 30 08 Accum Depr - Truck $30000
Loss on Disposal of Truck 6000
Equip - Truck $36000
To write-off disposal of truck
ct. 1Acquired a co"yright for *2((&(((.The co"yright has a usefu!!ife of (years.nstructions?6a8re"are Oourna! entries to record thetransactions abo%e.6b8re"are Oourna! entries to record the 2(12amortiQation ex"ense for intangib!e assets.6c8re"are the intangib!eassets section of the ba!ance sheet at ecember '1& 2(12.6d8re"arethe note to the Jnancia!s on TimeKs intangib!es as of ecember '1&2(12.AC3EB?a2-;an8atents)&((($ash)&(((;an-;unBesearch ande%e!o"ment ex"ense2'(&((($ash2'(&(((1-e"Ad%ertisingEx"ense12&((($ash12&(((1-ct$o"yright2((&((($ash2((&(((
7/25/2019 Cash Balance Per Bank
30/31
7/25/2019 Cash Balance Per Bank
31/31
Thispre*iewhas intentiona!!y lurredsections. ign upto
%iew the fu!! %ersion.
View Full Document
b'1-ecAmortiQation Ex"ense - 8atents1&(((8atents61(((((G1H1(M6)(((G1H=1&((('1AmortiQation Ex"ense -$o"yright7&((($o"yright6+((((G1H1(M62(((((G1H(G'H127&(((cntangib!e Assets8atents 61(((((M)(((-61((((M1(((*12(&((($o"yright 6+((((M2(((((-62)(((M7(((22=&(((Tota! intangib!e assets*')=&(((dTheintangib!e assets of the com"any consists of two "atents and
twoco"yrights. ne "atent with a tota! cost of *1)&((( is beingamortiQedin two segments 6*1((&((( o%er 1( years and *)&((( o%er= years@ theother "atent was obtained at no recordab!e cost. Aco"yright with a costof *+(&((( is being amortiQed o%er 1( years@ theother co"yright with acost of *2((&((( is being amortiQed o%er (years
https://www.coursehero.com/registerForm.php?reg_only=1https://www.coursehero.com/registerForm.php?reg_only=1Top Related