Question :
157. Fill in the missing numbers using the formula for Fixed : 1239872
157. Fill in the missing numbers using the formula for Fixed Asset Turnover:
Company A
Company B
Company C
Company D
Net Sales
$5,000,000
$720,000
$900,000
?
Beginning Fixed Assets
$450,000
$275,000
?
$380,000
Ending Fixed Assets
$800,000
?
$310,000
$420,000
Fixed Asset Turnover
?
2.4 times
3 times
2.6 times
158. Williams Company acquired machinery on July 1, 2009, at a cost of $130,000. The estimated useful life of the machinery was 10 years and the estimated residual value was $10,000. Williams uses the double-declining-balance method of depreciation. On October 1, 2012, Williams sold the equipment for $75,000.1) Record the journal entry for the depreciation on this machinery for 2012.2) Record the journal entry for the sale of the machinery.
159. Equipment was purchased on January 5, 2011, at a cost of $90,000. The equipment had an estimated useful life of 8 years and an estimated residual value of $8,000. After using the equipment for 3 years, the useful life was revised to a total of 10 years and the residual value was reduced to $2,004.Determine the straight-line depreciation expense for the year 2014 and following years.
160. Identify each of the following expenditures as chargeable to (a) Land, (b) Land Improvements, (c) Buildings, (d) Machinery and Equipment, or (e) other account.
(1)
Cost of paving parking area for employees and customers.
(2)
Insurance during construction of building.
(3)
Interest incurred on loan during construction of building.
(4)
Fee paid for installation of equipment.
(5)
Special foundation for new equipment acquired.
(6)
Insurance on new equipment while in transit.
(7)
Freight charges on new equipment.
(8)
Cost of repairing vandalism damage to equipment during installation.
(9)
Sales tax on new equipment.
(10)
Cost incurred in repairing damage resulting from installation of new equipment.
(11)
Cost of land fill for building site.
(12)
Cost of lubricating oil purchased for periodic oil changes for equipment.
(13)
Parking lot lighting.
(14)
Installing a fence around the parking lot.
(15)
Repainting the trim on a building.
(16)
Special assessment paid to city for extension of water main to property.
(17)
Cost of razing and removing the old building on property acquired for a building site.
(18)
Delinquent real estate taxes assumed by purchaser on property acquired for a building site.
(19)
Attorney’s fee for title search.
(20)
Architect’s fee for building plans and supervision of construction.
161. Identify the following as a Fixed Asset (FA), or Intangible Asset (IA), or Natural Resource (NR), or Neither (N)
(a)
computer
(b)
patent
(c)
oil reserve
(d)
goodwill
(e)
U. S. Treasury note
(f)
land used for employee parking
(g)
gold mine
