ACC291 Week 2 E8-3 BE9-13 Do it9-4 E9-9 E9-10 P9-5A

ACC291 Week 2 E8-3 BE9-13 Do it!9-4 E9-9 E9-10 P9-5A

E8-3

The ledger of Hixson Company at the end of the current year shows Accounts Receivable $120,000, Sales $840,000, and Sales Returns and Allowances $30,000.

BE9-13

Information related to plant assets, natural resources, and intangibles at the end of 2011 for Spain Company is as follows: buildings $1,100,000; accumulated depreciation-buildings $650,000; goodwill $410,000; coal mine $500,000; accumulated depletion-coal mine $108,000. Prepare a partial balance sheet of Spain Company for these items.

Do it! 9-4 Match the statement with the term most directly associated with it.
(a) Goodwill (d) Amortization
(b) Intangible assets (e) Franchise
(c) Research and development costs

E9-9

Presented below are selected transactions at Ingles Company for 2011.

Jan 1 Retired a piece of machinery that was purchased on January 1, 2001. 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, 2008. 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, 2007. The truck cost $39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.

E9-10

Beka Company owns equipment that cost $50,000 when purchased on January 1, 2008. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated useful life of 5 years.

P9-5A

At December 31, 2011, Jimenez Company reported the following as plant assets.

(a) Journalize the above transactions.The company uses straight-line depreciation for buildings and equipment.The buildings are estimated to have a 50-year life and no salvage value.The equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement.
(b) Record adjusting entries for depreciation for 2012.
(c) Prepare the plant assets section of Jimenez’s balance sheet at December 31, 2012.

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ACC291 Week 5 E13-1 E13-8 E14-1 P13-9A P13-10A P14-2A

E13-1 Pioneer Corporation had these transactions during 2011.
(a) Issued $50,000 par value common stock for cash.
(b) Purchased a machine for $30,000, giving a long-term note in exchange

and so on ...

E13-8 Here are comparative balance sheets for Taguchi Company

and so on ...

E14-1 Financial information for Blevins Inc. is presented below.

and so on ...

P13-9A Condensed financial data of Arma Inc. follow.

*P13-10A Data for Arma Inc. are presented in P13-9A. Further analysis reveals that accounts
payable pertain to merchandise creditors.

P14-2 The comparative statements of Villa Tool Company are presented below

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ACC291 Week 4 Do it 11-1 E11-15 E11-16 P11-6A P11-8A

Do It!11-1 Indicate whether each of the following statements is true or false.
_____ 1. The corporation is an entity separate and distinct from its owners.
_____ 2. The liability of stockholders is normally limited to their investment in the corporation.
_____ 3. The relative lack of government regulation is an advantage of the corporate form of
business.
_____ 4. There is no journal entry to record the authorization of capital stock.
_____ 5. No-par value stock is quite rare today

E11-15 On October 31, the stockholders’ equity section of Omar Company consists of common
stock $600,000 and retained earnings $900,000. Omar is considering the following two
courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding,
or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current
market price is $14 per share.

so on ...

E11-6 AI Corporation issued 100,000 shares of $20 par value, cumulative, 8% preferred stock
on January 1, 2009, for $2,100,000. In December 2011, AI declared its first dividend of $500,000.

P11-6A Arnold Corporation has been authorized to issue 40,000 shares of $100 par value, 8%,
noncumulative preferred stock and 2,000,000 shares of no-par common stock. The corporation
assigned a $5 stated value to the common stock. At December 31, 2011, the ledger contained the
following balances pertaining to stockholders’ equity

*P11-8A The following stockholders’ equity accounts arranged alphabetically are in the ledger
of McGrath Corporation at December 31, 2011.

and so on ...

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ACC291 Week 3 E9-7 E10-5 E10-10 E10-11 E10-15 E10-18 P10-5A P10-9A

ACC291 Week 3 E9-7 E10-5 E10-10 E10-11 E10-15 E10-18 P10-5A P10-9A

E9-7 Brainiac Company purchased a delivery truck for $30,000 on January 1, 2011.The truck
has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated
useful life of 8 years.Actual miles driven were 15,000 in 2011 and 12,000 in 2012.

so on ...

E10-5 Don Walls’s gross earnings for the week were $1,780, his federal income tax withholding
was $301.63, and his FICA total was $135.73.

E10-10 On January 1, Neuer Company issued $500,000, 10%, 10-year bonds at par. Interest is
payable semiannually on July 1 and January 1.

so on ...

E10-11 On January 1, Flory Company issued $300,000, 8%, 5-year bonds at face value.
Interest is payable semiannually on July 1 and January 1

E10-15 Leoni Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to
finance the construction of a building at December 31, 2011. The terms provide for semiannual
installment payments of $20,000 on June 30 and December 31

*E10-18 Hrabik Corporation issued $600,000, 9%, 10-year bonds on January 1, 2011, for
$562,613.This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable
semiannually on July 1 and January 1. Hrabik uses the effective-interest method to amortize
bond premium or discount.

P10-5A Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31,
2010. The proceeds from the note are to be used in financing a new research laboratory. The
terms of the note provide for semiannual installment payments, exclusive of real estate taxes and
insurance, of $29,433. Payments are due June 30 and December 31.

so on ...

*P10-9A Elkins Company sold $2,500,000, 8%, 10-year bonds on July 1, 2011.The bonds were
dated July 1, 2011, and pay interest July 1 and January 1. Elkins Company uses the straight-line
method to amortize bond premium or discount. Assume no interest is accrued on June 30.

so on ...

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