FINANCIAL+MANAG.ACCT.(LL) >CUSTOM PKG.<
7th Edition
ISBN: 9781260420159
Author: Wild
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 8, Problem 25E
Exercise 8-25 Accounting for plant assets under IFRS C2 P1 P2
Volkswagen Group reported the following information for property, plant, and equipment, along with additions, disposals,
| Property, plant, and equipment, net | €46,169 |
| Additions to property, plant, and equipment | 11,560 |
| Disposals of property, plant, and equipment | 2,430 |
| Depreciation on property, plant, and equipment | 7,509 |
| Impairments to property, plant, and equipment | 143 |
- Prepare Volkswagen’s
journal entry to record depreciation. - Prepare Volkswagen’s journal entry to record additions assuming they are paid in cash and are treated as “betterments (improvements)” to the assets.
- Prepare Volkswagen’s journal entry to record €2,430 in disposals assuming it receives €720 cash in return and the
accumulated depreciation on the disposed assets totals €1,195. - Volkswagen reports €143 of impairments. Do these impairments increase or decrease the Property, Plant, and Equipment account? By what amount?
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Exercise 8-12A (Algo) Effect of the disposal of plant assets on the financial statements LO 8-5
Un Company sold office equipment with a cost of $37,110 and accumulated depreciation of $32,541 for $6,720.
Required
a. What is the book value of the asset at the time of sale?
b. What is the amount of gain or loss on the disposal?
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Problem 9-15A Partial-period depreciation; disposal of PPELO2, 3, 6
CHECK FIGURES: 1. GAIN = $67,350; 2. LOSS = $23,867
Endblast Productions showed the following selected asset balances on December 31, 2020:
Land..
Building....
Accumulated depreciation, building ¹.
Equipment...
Accumulated depreciation, equipment²..
$396,800
526,400
393,600
Required
Prepare the entries for each of the following (round final calculations to the nearest whole dollar).
1. The land and building were sold on September 27, 2021, for $592,000 cash.
2. The equipment was sold on November 2, 2021, for $56,800 cash.
171,200
74,400
¹ Remaining estimated useful life is eight years with a residual value of $80,000; depreciated using the straight-line method to the nearest whole month.
2 Total estimated useful life is 10 years with a residual value of $16,000; depreciated using the double-declining-balance method to the nearest whole month.
Brief Exercise 8-5 (Algo) Effect of the disposal of plant assets on the financial statements LO 8-5
Mix & Match Company sold office equipment with a cost of $48,600 and accumulated depreciation of $33,000 for $28,000 cash.
Required:
a. What is the amount of gain or loss on the disposal?
b. How would the sale affect net income (increase, decrease, no effect)?
c. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect)?
d. How would the event affect the statement of cash flows (inflow, outflow, no effect)?
a.
b. Effect of sale on net income
c. Effect of sale on total assets
d. Effect of sale on statement of cash flows
Chapter 8 Solutions
FINANCIAL+MANAG.ACCT.(LL) >CUSTOM PKG.<
Ch. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - A company purchased machinery for $ 10,800,000 on...Ch. 8 - Prob. 4MCQCh. 8 - Prob. 5MCQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQ
Ch. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 19DQCh. 8 - Prob. 20DQCh. 8 - Prob. 21DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Prob. 11QSCh. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Prob. 14QSCh. 8 - Prob. 15QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - Exercise 8-24ᴬ Recording plant asset disposals P2...Ch. 8 - Exercise 8-25 Accounting for plant assets under...Ch. 8 - Prob. 1PSACh. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Prob. 6PSACh. 8 - Prob. 7PSACh. 8 - Prob. 8PSACh. 8 - Prob. 1PSBCh. 8 - Prob. 2PSBCh. 8 - Prob. 3PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Prob. 6PSBCh. 8 - Prob. 7PSBCh. 8 - Prob. 8PSBCh. 8 - Prob. 8SPCh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTNCh. 8 - Prob. 5BTNCh. 8 - Prob. 6BTNCh. 8 - Prob. 7BTNCh. 8 - GOOGLE
Google Inc. CONSOLIDATED BALANCE SHEETS (In...Ch. 8 - Prob. 9BTN
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