ACCT:2100 Introduction to Financial Accounting Fall 2017 Chapter 8 Take-Home Quiz Eigel Construction entered into each of the following transactions during 2016. Eigel uses straight-line depreciation on buildings and fixtures and the 150% declining balance method on equipment. Round all computations to the nearest dollar. A. On January 1, Eigel signed a $20,000, 8% note payable to purchase a fork lift. Interest and principal are due on April 1, 2017. The fork lift has a five-year useful life and a $1,000 residual value. B. On April 1, Eigel spent $10,000 to furnish its Board Room. The conference table had a fair value of $8,000, and the ten chairs with a fair value of $4,000. The table has a useful life of tern years and a S1000 residual value. The chairs have a useful life of four years and no residual value. C. On September 1, Eigel acquired a two acre site and a shed for $350,000. Eigel spent $35,000 clearing the land, demolishing the shed and hauling away the debris D. On January 1, Eigel paid $26,000 to rebuild a bulldozer originally purchased for $100,000 on 1/1/12. The bulldozer had an estimated useful life of 8 years and a $30,000 residual value. Thoe rebuild will extend the life by two years E. Sold a dump truck on 6/30/16 for $10,000. The truck was purchased on 1/1/13 for $95,000 and had a six-year useful life. F. On January 1, paid $5,000 for a five-year license to store explosives on site. Legal fees and inspection costs related to the license totaled $3,500 Required: 1) Prepare the journal entries to record each transaction 2) Prepare and adjusting journal entries necessary at 12/31/16. 3) Prepare the operating, investing and financing sections of the statement of cash flow. Show what would have been reported for each transaction. The operating section should be prepared under both the direct and indirect methods