Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 10, Problem 1PB
1.
To determine
Identify each item by letter and the list the amounts in columnar form.
2.
To determine
Determine the amount debited to Land, Land Improvements, and Building.
3.
To determine
Explain the contradictory application of the concept of
4.
To determine
Explain the effect on the current year’s income statement and balance sheet due to wrong classification of the cost of filling and grading land.
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which of the following is a revenue expenditure :
a- purchase of a computer for the office
b- legal costs for the purchase of property
c- cost extension to property
d- quarterly electricity bill
Instructions:
Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses. For any amounts entered in the Other Accounts column, also indicate the account title.
Item, Land, Land Improvements, Buildings, and Other Accounts.
Indicate (by choosing the appropriate letter) whether each of the following would be reported in the section of financial statements identified as: (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, (e) expense, or (f) long-term liabilities. (An item may be used multiple times)
(1)
____
Accumulated depreciation-Truck
(2)
____
Rent expense
(3)
____
Fees earned
(4)
____
Salaries payable
(5)
____
Prepaid rent
(6)
____
Store supplies
(7)
____
Advertising expense
(8)
____
Unearned rent
(9)
____
Note payable (all of it is due in 2025)
(10)
____
Truck
Chapter 10 Solutions
Financial Accounting
Ch. 10 - ONeil Office Supplies has a fleet of automobiles...Ch. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Immediately after a used truck is acquired, a new...Ch. 10 - Keyser Company purchased a machine that has a...Ch. 10 - Is it necessary for a business to use the same...Ch. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - Equipment acquired at the beginning of the year at...Ch. 10 - A truck acquired at a cost of 69,000 has an...Ch. 10 - A tractor acquired at a cost of 420,000 has an...Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - A building acquired at the beginning of the year...Ch. 10 - Equipment with a cost of 180,000 has an estimated...Ch. 10 - A truck with a cost of 82,000 has an estimated...Ch. 10 - On February 14, Garcia Associates Co. paid 2,300...Ch. 10 - On August 7, Green River Inflatables Co. paid...Ch. 10 - Equipment was acquired at the beginning of the...Ch. 10 - Equipment was acquired at the beginning of the...Ch. 10 - Prob. 7PEACh. 10 - Prob. 7PEBCh. 10 - On December 31, it was estimated that goodwill of...Ch. 10 - On December 31, it was estimated that goodwill of...Ch. 10 - Prob. 9PEACh. 10 - Prob. 9PEBCh. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Northwest Delivery Company acquired an adjacent...Ch. 10 - Warner Freight Lines Co. incurred the following...Ch. 10 - Jackie Fox owns and operates Platinum Transport...Ch. 10 - Quality Move Company made the following...Ch. 10 - Tri-City Ironworks Co. reported 44,500,000 for...Ch. 10 - Convert each of the following estimates of useful...Ch. 10 - A refrigerator used by a meat processor has a cost...Ch. 10 - A diesel-powered tractor with a cost of 180,000...Ch. 10 - Prior to adjustment at the end of the year, the...Ch. 10 - A John Deere tractor acquired on January 4 at a...Ch. 10 - A storage tank acquired at the beginning of the...Ch. 10 - Sandblasting equipment acquired at a cost of...Ch. 10 - A building with a cost of 1,200,000 has an...Ch. 10 - Willow Creek Company purchased and installed...Ch. 10 - Equipment acquired on January 8, 2013, at a cost...Ch. 10 - Equipment acquired on January 6, 2013, at a cost...Ch. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Apple Inc. designs, manufactures, and markets...Ch. 10 - Prob. 22ECh. 10 - Prob. 23ECh. 10 - The following table shows the revenue and average...Ch. 10 - Prob. 25ECh. 10 - Prob. 26ECh. 10 - Prob. 27ECh. 10 - On October 1, Bentley Delivery Services acquired a...Ch. 10 - The following payments and receipts are related to...Ch. 10 - Montes Coffee Company purchased packaging...Ch. 10 - Perdue Company purchased equipment on April 1,...Ch. 10 - New lithographic equipment, acquired at a cost of...Ch. 10 - The following transactions, adjusting entries, and...Ch. 10 - Prob. 6PACh. 10 - Prob. 1PBCh. 10 - Waylander Coatings Company purchased waterproofing...Ch. 10 - Prob. 3PBCh. 10 - New tire retreading equipment, acquired at a cost...Ch. 10 - The following transactions, adjusting entries, and...Ch. 10 - Prob. 6PBCh. 10 - Prob. 1CPCh. 10 - The following is an excerpt from a conversation...Ch. 10 - Tuttle Construction Co. specializes in building...Ch. 10 - Prob. 5CP
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Similar questions
- 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. 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: 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.arrow_forwardAllocate 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 apparel business. The receipts are identified by an asterisk. Instructions Determine the increases to Land, Lind Improvements. and Building.arrow_forwardJournal Entries Prepare the journal entry to record each of the following independent transactions. (Use the number of the transaction in lieu of a date for identification purposes.) Services provided on account of $1,530 Purchases of supplies on account for $1,365 Services provided for cash of $750 Purchase of equipment for cash of $4,240 Issuance of a promissory note for $2,500 Collections on account for $890 Sale of capital stock in exchange for a parcel of land; the land is appraised at $50,000 Payment of $4,000 in salaries and wages Payment of open account in the amount of $500arrow_forward
- Where, if at all, should the following items be classifiedon a balance sheet?(a) Goods out on approval to customers.(b) Goods in transit that were recently purchased f.o.b.destination.(c) Land held by a realty firm for sale.(d) Raw materials.(e) Goods received on consignment.(f) Manufacturing supplies.arrow_forwardThe cost of land owned by a business is recorded in the Land account and this account is classified as an expensearrow_forwardWhere, if at all, should the following items be classified on a statement of financial position? (a) Goods out on approval to customers (b) Goods in transit that were recently purchased FOB destination (c) Land held by a real estate firm for sale (d) Raw materials (e) Goods received on consignment (f) Stationery suppliesarrow_forward
- Match each transaction to one of the following activities of an organization: financing activity(F), investing activity (I), or operating activity (O). An organization sells some of its land.arrow_forwardWhich of the following best describes an application of historical cost? A.Property is exchanged with another business for services received. B.Transactions are valued in terms of the currency of the business’ country. C.An owner uses their personal cheque account to buy milk at the grocery store. D.A transaction is recorded based on the dollars exchanged at the time of the transaction. E.A sales transaction is recorded from the customer sales order.arrow_forwardWhich of the following costs are reported on a company’s income statement and balance sheet? Select one: a. Cost of goods sold; Accumulated depreciation b. Gain on sale of land; Cost of goods sold c. Goodwill; Accounts payable d. Accumulated deprecation; Landarrow_forward
- Classify the accounts listed below by matching the account name with one of the following financial statementsections in which the account would be reported:a. Current Assetsb. Fixed Assetsc. Intangible Assetsd. Current Liabilitye. Long-Term Liabilityf. Owners’ Equityg. Revenuesh. Operating Expensesi. Other Income/Expense____ 31. Buildings____ 32. Accumulated Depreciation - Buildings____ 33. Depreciation Expense____ 34. Trademarks____ 35. Amortization Expense____ 36. Repairs Expense____ 37. Land Improvements____ 38. Gain on sale of equipment____ 39. Loss on disposal of asset____ 40. Loss from Impaired Goodwillarrow_forwardWhich of these transactions would be part of the operating section? A. land purchased, with note payable B. sales of product, for cash C. cash paid for purchase of equipment D. dividend payments to shareholders, paid in casharrow_forwardThe following situations involve accounting principles and assumptions. 1. Virtue Company owns land that is worth substantially more than it originally cost. To provide more relevant information, Virtue reports the land at market value in its accounting reports. 2. Benjamin Company includes in its accounting records only transaction data that can be expressed in terms of money.3. Josh Burke, owner of Josh’s MovieHouse, records his personal living costs as expenses of the MovieHouse.Instructions For each of the three situations, say if the accounting method is current or incorrect. If correct, identify which principle or assumption supports the method used. If incorrect, identify which principle or assumption has been violated.arrow_forward
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