1. I am working on Accounting problem, but dont know how to create a balance sheet or income statement for it. Please help? Also, attached my excel spreadsheet for review and help?

On July 1, 2014, Steff Inc. invested $720,000 in a mine estimated to have 800,000 tons of ore of uniform grade. During the last 6 months of 2014, 120,000 tons of ore were mined and sold.

Exercise #1 On March 1, 2014, Rich Company acquired real estate on which it planned to construct a small office building. The company paid $80,000 in cash. An old warehouse on the property was razed at a cost of $9,400; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,100 attorney's fee for work concerning the land purchase, $5,000 real estate broker's fee, $7,800 architect's fee, and $12,700 to put in driveways and a parking lot. Instructions (a) Determine the amount to be reported as the cost of the land. broker's fe 5000 Real estate 80000 warehouse 9400 Salvaged M -1700 attorney fe 1100 Cost of Land 93,800 (b) For each cost not used in part (a), indicate the account to be debited. Type of Fee Amount Building 1,700 Architect's fee Land Improvement 7,800 Driveways and parking lot Exercise #2 Xi Company purchased a new machine on October 1, 2014, at a cost of $96,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. (a) Straight-line for 2014. Straight - line: Asset cost - Est. Salvage Value/ Number of accounting periods for estimated useful life. Asset Cost 96,000 Salvage Value 12,000 Useful Life 5 Depreciation 4,800 Depreciation per month 1,600 Depreciation for 2014 3 months Oct - Dec (b) Units-of-activity for 2014, assuming machine usage was 1,700 hours. Depreciation per unit= Asset cost- Est. Salvage Value/Est. total units of production during useful life Depreciate per period = Depreciation per unit x number of units of goods/services produced Asset Cost 96,000 Salvage Value 12,000 Useful Life 10,000 Depreciation per unit 9.60 Depreciation for 2014 96,000 Asset Cost 12,000 Salvage Value 84,000 depreciable base = how much the asset 96,000 cost of the asset 4,800 Accumulated Depreciation 91,200 Book value 96,000 cost of the asset 16,320 Accumulated Depreciation 79,680 Book value (c) Declining-balance using double the straight-line rate for 2014 and 2015. Ignore salvage value for this calculation: 2 x (straight line rate ((Acquisition costs/useful life)) x (asset costs - accumulated depreciation). 2014 2015 Asset Cost 96,000 Asset Cost 96,000 double straight line rate 20% 2015 Book Value 46,080 period 3 month 9600 double straight line rate 40% Depreciation for 2014 19,200 Depreciation for 2015 30,720 96,000 cost of the asset (19,200) Accumulated Depreciation 76,800 Book value 96,000 cost of the asset 49,920 Accumulated Depreciation 46,080 Book value much the asset depreciates over the useful life Exercise #3 Foley Company owns equipment that cost $50,000 when purchased on January 1, 2011. It has been depreciated using the straight-line method based on estimated salvage value of $8,000 and an estimated useful life of 5 years. Instructions Prepare Foley Company's journal entries to record the sale of the equipment in these four independent situations. Asset Cost $ 50,000 Salvage Value $ 8,000 Useful Life 5 Accumulated Depreciation Amount Book Value 2011 10,000 40,000 2012 20,000 30,000 2013 30,000 20,000 2014 40,000 10,000 2015 50,000 - Calculate the book value on the date of the sale Book Value = Cost - Accumulated depreciation a. Sold for $28,000 on January 1, 2014. Account Title Debit Credit Cash 28,000 Sale Equipment 20,000 Gain 8,000 Equipment 28,000 To record sale of equipment at a price greater than book value c. Sold for $11,000 on January 1, 2014. Account Title Debit Credit Sale 20000 Loss 9000 Cash 11000 To record sale of equipment at a price less than book value b. Sold for $28,000 on May 1, 2014. Account Title Sale Increase Cash d. Sold for $11,000 on October 1, 2014. Account Title Debit Credit Sale 12500 Loss 1500 Cash 11000 To record sale of equipment at a price less than book value Debit Credit 28,000 4,667 23,333 Always figure the gain or loss as the last step in the process additional 9 months depreciation expense and acc dep Jan - Oct 1st Step #1 Step #2 step #3 additional 4 months depreciation expense and acc dep Jan - May 1st Account Title Sale Acc Gain Debit Credit 28,000 26,667 1,333 Account Title Sale Gain Cash Debit Credit 5,000 6,000 11,000 f the sale eciation cash the cost of the asset Accumulated Depreciation Compute the gain or loss Exercise #4 On July 1, 2014, Steff Inc. invested $720,000 in a mine estimated to have 800,000 tons of ore of uniform grade. During the last 6 months of 2014, 120,000 tons of ore were mined and sold. Instructions Depletion costs per unit 0.9 Assume that the 120,000 tons of ore were mined, but only 90,000 units were sold. How are the costs applicable to the 30,000 unsold units reported? The balance sheet would show ore on hand a current asset at 30,000 tons times the cost per ton 2014 Balance sheet Cash Mined 90000 27000 Income statement Exercise #5 The stockholders' equity section of Able Corporation at December 31 is as follows. Able Corporation Balance Sheet (partial) Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 5,000 shares issued and outstanding $300,000 Common stock, no par, 750,000 shares authorized, 600,000 shares issued 1,200,000 Total paid-in capital 1,500,000 Retained earnings 1,858,000 Total paid-in capital and retained earnings 3,358,000 Less: Treasury stock (75,000 common shares) 75,000 Total stockholders' equity $3,283,000 From a review of the stockholders' equity section, as chief accountant, write a memo to the president of the company answering the following questions. a. How many shares of common stock are outstanding? 150,000 b. Assuming there is a stated value, what is the stated value of the common stock? $600,000 c. What is the par value of the preferred stock? 300,000 d. If the annual dividend on preferred stock is $30,000, what is the dividend rate on preferred stock? e. If dividends of $60,000 were in arrears on preferred stock, what would be the balance in Retained Earnings? Dividends in arrears never appear as a liability to a corporation because they are not a legal liability until declared by the board of directors. Formulas for shares of stock issued -outstanding treasury shares wering the following questions. equals issued minus treasury stock total valueumber of issued oard of directors. 10% 1800000 525000 120000 645,000 issued -treasury shares outstanding shares Exercise 6 The following accounts appear in the ledger of Alexis Inc. after the books are closed at December 31. Common Stock, no par, $1 stated value, 400,000 shares authorized; 300,000 shares issued $300,000 Paid-in Capital in Excess of Stated ValueCommon Stock 1,200,000 Preferred Stock, $5 par value, 8%, 40,000 shares authorized; 30,000 shares issued 150,000 Retained Earnings 564,000 Treasury Stock (10,000 common shares) 35,000 Paid-in Capital in Excess of ParPreferred Stock 50,000 Instructions Prepare the stockholders' equity section at December 31. Preferred Stock, $5 par value, 8%, 40,000 shares authorized; 30,000 shares issued Common Stock, no par, $1 stated value, 400,000 shares authorized; 300,000 shares issued Paid-in Capital in Excess of Stated ValueCommon Stock Total Paid-in Capital in Excess of ParPreferred Stock Total paid-in Capital Retained Earnings Less Treasury Stock (10,000 common shares) Total Stockholders' Equity $ 150,000 $ 300,000 $ 1,200,000 $ 1,500,000 $ 1,650,000 $ 50,000 $ 1,700,000 $ 564,000 $ 2,264,000 $ 35,000 $ 2,229,000 C A R -TS C/S APIC RE P/S