Question 6Using completed-contract method:Record the journal entries for ACE corporation for 2001, 2002, and 2003Record the partial balance sheet for 2003 for just the Asset section in aA.B.suitable formatACE Construction CorporationContract Price: $1,500,0002002$1,350,000 $1,360,000460,000575,000555,00020012003$1,365,000Costs incurred during the current yearEstimated costs to complete at year-end 1,000,000Progress billings during yearCollections on billings during the year300,000270,000625,000675,000

Completed-Contract method All revenue and expenditure recognition can be postponed until the…

Question 6 Using completed-contract method: Record the journal entries for ACE corporation for 2001, 2002, and 2003 Record the partial balance sheet for 2003 for just the Asset section in a A. в. suitable format ACE Construction Corporation Contract Price: $1,500,000 2001 2002 $1,350,000 $1,360,000 460,000 575,000 555,000 2003 $1,365,000 Costs incurred during the current year Estimated costs to complete at year-end 1,000,000 Progress billings during year Collections on billings during the year 300,000 270,000 625,000 675,000

Question 6 Using completed-contract method: Record the journal entries for ACE corporation for 2001, 2002, and 2003 Record the partial balance sheet for 2003 for just the Asset section in a A. в. suitable format ACE Construction Corporation Contract Price: $1,500,000 2001 2002 $1,350,000 $1,360,000 460,000 575,000 555,000 2003 $1,365,000 Costs incurred during the current year Estimated costs to complete at year-end 1,000,000 Progress billings during year Collections on billings during the year 300,000 270,000 625,000 675,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 14RE: (Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a...

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Exercise 10-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $352,755 for real estate with land, land improvements, and a building. Land is appraised at $238,500; land improvements are appraised at $79,500; and the building is appraised at $212,000.1. Allocate the total cost among the three assets.2. Prepare the journal entry to record the purchase.
Question Content Area A building with an appraisal value of $130,876 is made available at an offer price of $155,610. The purchaser acquires the property for $39,936 in cash, a 90-day note payable for $25,942, and a mortgage amounting to $59,561. The cost of the building to be reported on the balance sheet is a. $115,674 b. $125,439 c. $155,610 d. $130,876
QUESTION 8 Co. A purchased a patent on 31 December 20X1 for $450,000. Co. A expects to use the patent for 5 years, after which it will be valueless. According to IAS 38 Intangible assets, compute the annual amortisation charge. What is the journal entry required to record the amortisation in the accounts for the year ended 31 December 20X2?
Question Content Area A fixed asset with a cost of $55,000 and accumulated depreciation of $46,750 is traded for a similar asset priced at $76,000. Assuming a trade-in allowance of $4,700, the recognized loss on the trade is a. $(8,250) b. $(29,250) c. $(3,550) d. $(4,700)
Carrying amount of right to use asset at the end of 31st December 2022 = Initial measurement at 1 Jan 2022 - Depreciation for the year = P1,104,558 - P1,104,558/8 years x 1 year = P966,488 Hence, the carrying amount of right to use asset at the end of 2022 is = P966,488Please elaborate this solution and answer. P1,104,558 - P1,104,558 the answer is ZERO, hence if you multipty or divide it with any numbers, the answer would be zero. So, what is the solution for P966,488 answer?
Exercise 10-24 On December 31, 2020, Vaughn Inc. has a machine with a book value of $1,353,600. The original cost and related accumulated depreciation at this date are as follows. Machine $1,872,000 Less: Accumulated depreciation 518,400 Book value $1,353,600 Depreciation is computed at $86,400 per year on a straight-line basis.Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. Your answer is partially correct. Try again. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $619,200 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If…
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i) Company X Financial Year ends March 31. A laptop purchased 02 August 2018 at a cost of P9,500 was disposed off in January 2020 for P6800. Assuming the organisation follows local GAAPS on depreciation, provide the Journal Entries for this transaction. Outline all assumptions used. (ii) The following in being considered: Purchase of an office building worth P1M from unrestricted funding. Currently, the office building is on a 2-year lease, with rentals of BWP22,000 per month. 11 Provide your recommendations to the Finance Manager. What would be the possible effect on the Financial Health of the organisation if these transactions are approved (iii) List any key financial controls for an NGO and why these are important. (iv) Company X’s year-end is March 31. It is now April 4. A staff member asks you to process an unpaid invoice with details as follows: The invoice is for bus transportation in the amount of P800 and is dated April 2. The invoice indicates the charges relate to…
(Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a MACRS life of 7 years. The residual value of the asset is 35,000. Calculate the depreciation expense for Year 1 and Year 2 using MACRS.
Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search 2,500 b. Cost of real estate acquired as a plant site: Land 285,000 Building (to be demolished) 55,000 c. Delinquent real estate taxes on property, assumed by purchaser 15,500 d. Cost of tearing down and removing building acquired In (b) 5,000 e. Proceeds from sale of salvage materials from old building 4,000 f. Special assessment paid to city for extension of water main to the property 29,000 g. Architects and engineers fees for plans and supervision 60,000 h. Premium on one-year insurance policy during construction 6,000 i. Cost of filling and grading land 12,000 j. Money borrowed to pay building contractor 900,000 k. Cost of repairing windstorm damage during construction 5,500 1. Cost of paving parking lot to be used by customers 32,000 m. Cost of trees and shrubbery planted 11,000 n. Cost of floodlights installed on parking lot 2,000 o. Cost of repairing vandalism damage during construction 2,500 p. Proceeds from insurance company for windstorm and vandalism damage 7,500 q. Payment to building contractor for new building 800,000 r. Interest incurred on building loan during construction 34,500 s. Refund of premium on insurance policy (h) canceled after 11 months 500 Instructions 1.Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicate receipts by an asterisk. Identify each item by letter and list the amounts in columnar form, as follows: Item Land Land improvements Building Other Accounts 2.Determine the amount debited to Land, Land Improvements, and Building. 3.The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation. 4.What would be the effect on the current years income statement and balance sheet if the cost of filling and grading land of 12,000 [payment (i)] was incorrectly classified as Land Improvements rather than Land? Assume that Land Improvements are depreciated over a 20-year life using the double-declining-balance method.
Entries for sale of fixed asset Equipment acquired on January 8 at a cost of 168,000 has an estimated useful life of 18 years, has an estimated residual value of 15,000, and is depreciated by the straight-line method. A. What was the book value of the equipment at December 31 the end of d1e fourd1 year? B. Assuming that the equipment was sold on April 1 of the fifth year for 125,000, Journalize the entries to record (1) depreciation for the three months until the sale date, and (2) the sale of the equipment.