Answer
1. PART A
Date |
Assets |
Liabilities |
Equity |
Net income |
Cash flow |
Jan 01,Year1 |
+/- |
IA |
|||
December 31, Year 1 |
- |
- |
- |
||
Sept 30, Year 2 |
- |
- |
OA |
||
December 31, Year 2 |
- |
- |
- |
||
Jan 01,Year3 |
- |
- |
OA |
||
December 31, Year 3 |
- |
- |
- |
||
Jan 01,Year4 |
- |
- |
OA |
||
December 31, Year 4 |
- |
- |
- |
||
Jan 01,Year5 |
+/- |
IA |
|||
December 31, Year 5 |
- |
- |
- |
||
Oct 01,Year6 |
- |
+ |
+ |
FA |
Morris Inc. recorded the following transactions over the life of a piece of equipment purchased in...
Morris Inc recorded the following transactions over the life of a piece of equipment purchased in Yeart Jan. 1, Year 1 Purchased equipment for 500,000 cash. The equipment was estimated to have a five-year life and 35,000 salvage value and was to be depreciated using the straight line method. Dec. 31, Year 1 Recorded depreciation expense for Year 1. Sept. 30, Year 2 Undertook routine repairs costing $900. Dec. 31, Year 2 Recorded depreciation expense for Year 2. Jan. 1,...
Morris Inc. recorded the following transactions over the life of a piece of equipment purchased in Year 1 Jan. 1, Year 1 Purchased equipment for $90,000 cash. The equipment was estimated to have a five-year life and $5,000 salvage value and was to be depreciated using the straight-line method. Dec. 31, Year 1 Recorded depreciation expense for Year 1. Sept. 30, Year 2 Undertook routine repairs costing $900. Dec. 31, Year 2 Recorded depreciation expense for Year 2. Jan. 1,...
Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $135,000. The equipment was expected to have a useful life of three years, or 27,000 operating hours, and a residual value of $5,400. The equipment was used for 10,800 hours during Year 1, 8,100 hours in Year 2, and 8,100 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity...
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Problems for Section 8B 8B-1. RASPBERRY Corporation's chart of accounts includes the following categories: Land, Equipment, Patents, Copyrights, and Coal Reserves. RASPBERRY completed the following transactions during the year: Jan 2 Feb 3 Purchased Equipment for $140,000 cash; RASPBERRY also had to pay 10% tax and a $6,000 license fee. Purchased a coal field with 40,000 tons of coal reserves for $2,000,000 cash. Purchased a copyright from another company for $120,000 cash. Purchased a patent and a piece of land...
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Problems for Section 8B 8B-1. RASPBERRY Corporation's chart of accounts includes the following categories: Land, Equipment, Patents, Copyrights, and Coal Reserves. RASPBERRY completed the following transactions during the year: Jan 2 Feb 3 March 4 May 5 Purchased Equipment for $140,000 cash; RASPBERRY also had to pay 10% tax and a $6,000 license fee. Purchased a coal field with 40,000 tons of coal reserves for $2,000,000 cash. Purchased a copyright from another company for $120,000 cash. Purchased a patent and...
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