I need help with this assignment. Accounting chapter 9,10,11

CHAPTER 9 - ASSIGNMENT 1: Student Name Calculating the Amount of Bad Debts Expense Kimberly Thomas 1. INSTRUCTIONS: Calculate the amount of Estimated Amount of Bad Debts for each of the Aging Categories shown in the Accounts Receivable Schedule below and find the Total of all the Categories. AC C OU N TS CUSTOMER NAME Abbot, Andrea Able, Steve Ackers, Carylon Zwickie, Zack TOTALS % UNCOLLECTIBLE R EC EI VAB LE 1 - 30 Days 328.56 789.23 298.45 78,499.87 1% AGI N G 31 - 60 Days 117.34 59.34 56.43 89.45 12,866.74 3% SCHEDULE 61 - 90 Over 90 Days Days 28.45 4,216.74 6% 2,144.98 20% TOTAL $0.00 ESTIMATED BAD DEBTS A. Compute the amount of the Adjusting Entry for Bad Debts Expense if the Allowance for Doubtful Accounts has a CREDIT Balance of $460.00 because the amount of last year's write off was Overestimated. Desired Ending Credit Bal. Credit Balance in Allow. for in Allow. for Doubtful Accts. Doubtful Accts. from Last Yr. Amount of Adjusting Entry Needed B. Compute the amount of the Adjusting Entry for Bad Debts Expense if the Allowance for Doubtful Accounts has a DEBIT Balance of $460.00 because the amount of last year's write off was Underestimated. Desired Ending Credit Bal. Debit Balance in Allow. for in Allow. for Doubtful Accts. Doubtful Accts. from Last Yr. Amount of Adjusting Entry Needed ACCT 211 - Assignment Prepared by Barry J. Bomboy Chap. 9 - Page 1 he Amount of Bad Debts Expense Chap. 9 - Page 1 CHAPTER 9 - ASSIGNMENT 2 - PART 1: Posting Accounts & Notes Receivable Transacti 1. INSTRUCTIONS: Record each of the Accounts Receivable and Notes Receivable Transactions described below in the General Journal using Accounts from the partial Chart of Accounts shown below. Omit explanations but leave a blank line between transactions. ASSETS 11 - Cash 12 - Accounts Receivable 13 - Allowance for Doubtful Accts. 14 - Notes Receivable 15 - Interest Receivable T# Transaction Description A. EXAMPLE: Sold $1,200 of merchandise to J. Smith on account. B. Customer J. Smith returned $200 of the merchandise purchased on account in Transaction A. C. Customer J. Smith paid the amount owed in Trans. A less the merchandise returned in Trans. B. A 2% discount was granted for prompt payment of his bill. D. C. Jones was charged a monthly interest rate of 1.5% on her store credit card's unpaid bal.of $2,000 E. Total Bad Debts for the month was estimated to be 1% of its net credits sales of $150,000 for the month. REVENUES 41 - Sales 42 - Sales Returns & Allow. 43 - Sales Discounts 44 - Interest Revenue EXPENSES 51 - Bad Debts Expense 52 - Service Charge Expense Account Titles Accounts Receivable Sales P.R. 12 41 - Debit 1,200 Credit 1,200 ACCT 211 - Assignment Chap. 9 - Page 2 T# Transaction Description Account Titles F. Customer I. Nopaa's $400 account receivable was - written off as uncollectible after repeated attempts to contact him. G. Customer I. Nopaa showed up after a lengthy trip abroad and paid the amount he owned in full after - his account had been written off in Transaction F. (NOTE: His write-off must be reversed and then recorded as collected). H. $8,000 of its Accounts Receivable were factored (sold) to another firm less a 3% service charge fee to raise cash for buying seasonal inventory. I. $700 of merchandise was sold to a customer on a Capital One credit card who reimbursed the store immediately less a 2% service charge fee. J. A 60 day, 8% annual interest rate promissory note for $3,000 was issued to replace the long over due - account receivable of customer M. Fundless K. One month's interest accrued and was recorded on the note receivable in Transaction J. - P.R. Debit Credit ACCT 211 - Assignment Chap. 9 - Page 3 T# Transaction Description Account Titles L. The note receivable in Transaction J & the interest - earned in Transaction K along with the remaining interest was collected. M. Another 6 month, 8% interest rate note receivable for $2,000 from Y. Scofflaw was dishonored (not paid) on its due date. - P.R. Debit Credit ACCT 211 - Assignment Chap. 9 - Page 4 ng Accounts & Notes Receivable Transactions CHAPTER 9 - ASSIGNMENT 2 - PART 2: Posting Accounts & Notes Receivable Transact 2. INSTRUCTIONS: Post each of the General Journal Transactions recorded on the previous sheets to the General Ledger Accounts shown below. NOTE: All accounts should have their Normal Balance. Cash T# Debit X Beg. Bal #11 Credit DR. Bal. 1,000 1,000 1,000 1,000 1,000 1,000 Accounts Receivable #12 T# Debit Credit DR. Bal. X Beg. Bal 12,000 A 1,200 13,200 13,200 13,200 13,200 13,200 13,200 13,200 13,200 13,200 13,200 Allow. For Doubtful Accts. #13 T# Debit Credit CR. Bal. Beg. Bal. X 200 200 200 200 Notes Receivable #14 T# Debit Credit DR. Bal. X Beg. Bal 4,000 4,000 4,000 4,000 Interest Receivable #15 T# Debit Credit DR. Bal. X Beg. Bal 200 200 200 200 Sales T# A Debit #41 Credit CR. Bal. 1,200 1,200 1,200 Sales Discounts #43 T# Debit Credit DR. Bal. Sales Returns & Allowances #42 T# Debit Credit DR. Bal. Interest Revenue #44 T# Debit Credit CR. Bal. Err:522 Err:522 Err:522 Bad Debts Expense #51 T# Debit Credit DR. Bal. Service Charge Expense #52 T# Debit Credit DR. Bal. - ACCT 211 - Assignment Chap. 9 - Page 5 g Accounts & Notes Receivable Transactions Chap. 9 - Page 5 ACC 211 - CHAPTER 9 - ASSIGNMENT 2: General Ledger Check Figures Compare your figures with the Check Figures below to troubleshoot possible recording or computational errors. CHECK # LEDGER ACCOUNT TITLES 11 Cash 12 Accounts Receivable Figures CREDIT Total # DEBIT CREDIT Total # Balance1 Balance1 Entries1 Balance Balance Entries1 13,866 6 1,000 1 2,710 11 13,200 1 1,700 15 Interest Receivable 1 120 4 200 1 1 2 1,200 - 20 1 - - 200 1 - - 70 52 Service Charges Expense 1 4,000 44 Interest Revenue 51 Bad Debts Expense 200 4 1,900 43 Sales Returns & Allowances 4 2,000 41 Sales 42 Sales Discounts Figures DEBIT 13 Allowance for Doubtful Accts. 14 Notes Receivable YOUR 3 - - 1,500 1 - - 254 2 - - Includes Beginning Balances & Example Transaction ACCT 211 - Assignment Chap. 9 - Page 6 Acct. Error Alert Error Error Error Error Error Error Error Error Error Error Error CHAPTER 9 - ASSIGNMENT 3 - Identifying Parts of a Promissory Note 1. Date of Note is _ _ _ _ _ _ _ _ _ _ _ _ _ $ 2,400 2. Term of Note is _ _ _ _ _ _ _ _ _ _ _ _ _ 60 days after date I promise to pay to the order of: 3. Due Date of Note is (calculate) Tech Elec Inc. Richmond, VA _____________________ 4. If the Term of the Note were 2 months instead of 60 days, the Due Date July 10, 201X ___________ __ Two Thousand Four Hundred and no/00 Dollars for the value received with annual interest at annual rate of payable at the would now be _ _ _ _ _ _ _ _ _ _ _ _ _ _ 5. Principle of Note is _ _ _ _ _ _ _ _ _ _ _ 6. Interest Rate of Note is _ _ _ _ _ _ _ _ _ 7. The Interest is _ _ _ _ _ _ _ _ _ _ (Simple / Compound) Interest. 8. The Formula used to Calculate Interest is: Principal _ _ Rate _ _ Time (+ / / x or ). 9. The Amount of Interest on the Note is 10% First National Bank of Washington D.C. Paul Dole____ 10. The Year used to Calculate Interest is _ _ _ _ _ _ _ _ _ _ _ _ (365 day Calendar / 360 day Banker's) Year. 11. The Maker of this Note is _ _ _ _ _ _ _ _ _ _ _ _ _ _ to whom this is a Note _ _ _ _ _ _ _ _ _ _ _ (Receivable / Payable). 12. The Payee of this Note is _ _ _ _ _ _ _ _ _ _ _ _ _ _ to whom this is a Note _ _ _ _ _ _ _ _ _ _ _ (Receivable / Payable). (calculate) $ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ACCT 211 - Assignment Chap. 9 - Page 7 CHAPTER 10 - ASSIGNMENT 1: Calculating Depreciation, Depletion, & Amortization A. DATA for the Calculation of Depreciation of Equipment using Double Declining Balance Equipment costing $200,000 is planned to be used for 4 years and then sold for an estimated salvage value of $50,000. Compute the table below using he Double Declining Balance method of Depreciation Preliminary Calculations: Straight Line Depreciation Rate = Double Declining Bal. Depr. Rate = CHECK FIGURE: Yr. 3 Book Value $50,000 Year Year 1 Year 2 Year 3 Annual Accumulated Depreciation Depreciation - Book Value 200,000 200,000 200,000 B. DATA for the Calculation of Depletion of a Mine using Units of Production A copper mine was acquired at a cost of $1,900,000. An additional $200,000 was spend building an access road to the mine. Geologists believe the mine contains 400,000 tons of copper & that the land will be worth $100,000 after the copper is removed. The amount of copper extracted during the first three years was as follows: Year 1 - 68,000 tons; Year 2 - 74,000 tons, & Year 3 - 85,000 tons. Complete the table below using Annual Accumulated Book using the Units of Production method of Depletion. Preliminary Calculations: Year Depletion Depletion Value Year 1 Depreciable Cost of Mine = 2,100,000 Year 2 Depletion Cost Per Ton of Ore = 2,100,000 Year 3 CHECK FIGURE: Yr. 3 Depletion $425,000 2,100,000 C. DATA for the Calculation of the Amortization of Patent using Straight Line Method A patent was purchased a patent from a competitor at a cost of $154,000. The patent has a remaining life of 14 years with no residual value. Compute the table below using the Straight Line Method of Amortization. Preliminary Calculations: Depreciable Cost of Patent = Straight Line Depreciat. Amount = ACCT 211 - Assignment Chap. 10 - Page 1 Year Year 1 Year 2 Year 3 Annual Accumulated Amortization Amortization - Book Value 154,000 154,000 154,000 ng Depreciation, Depletion, & Amortization CHAPTER 10 - ASSIGNMENT 2: Recording Depreciation Transactions 1. INSTRUCTIONS: Record each of the Depreciation Transactions described below in the General Journal Using the Accounts from the partial Chart of Accounts shown below. Omit explanations but leave a blank linle between transactions. ASSETS 11 - Cash 12 - Equipment 13 - Accum. Depr.-Equip. 14 - Trucks 15 - Accum. Depr.-Trucks ASSETS continued 16 - Mineral Deposits 17 - Accum. Depletion 18 - Patents 19 - Goodwill EXPENSES 51 52 53 54 55 - Maintenance Expense - Depr. Exp.- Equipment - Depr. Exp.- Trucks - Depletion Expense - Amoritization Expense T# Transaction Description ACCOUNT TITLES A. EXAMPLE: Paid $58,000 for new Equipment. Equipment Cash An additional $1,000 was paid for delivery & $3,000 for installation and testing. B. The equipment in Transaction A was estimated to have a useful life of 6 years and a salvage value of $8,000. Record the first year's depreciation using the straight line method. C. Discarded an old piece of equipment which had cost $12,000 and had an accumulated depreciation of $8,000 at the time of disposal. D. Assume the equipment in Transaction C was sold for $2,000 instead of being discarded. - - OTHER REVENUE 61 - Gain on Disposal of Assets P.R. 12 11 DEBIT CREDIT 62,000 62,000 ACCT 211 - Assignment Chap. 10 - Page 2 T# Transaction Description E. Assume the equipment in Transaction C was sold for $5,000 instead of being discarded. F. Assume that the equipment in Transaction C having a fair market value of $2,000 was traded in for similar new equipment instead & $15,000 in cash was paid. G. Assume that the equipment in Transaction C having a fair market value of $7,000 was traded in for similar new equipment instead & $11,000 in cash was paid. H. 40,000 tons of ore was extracted from a company mine at a depletion rate of $.50 a ton. I. One year of a 14 year patent costing $42,000 expired. J. 5% of the goodwill purchased for $80,000 when the business was bought is amortized. ACCOUNT TITLES - P.R. DEBIT CREDIT ACCT 211 - Assignment Chap. 10 - Page 3 11 Cash Cash 11.1 12 Accounts Receivable Accounts Receivable 12.1 13 Allowance for Doubtful Accts. Allowance for Doubtful Accts. 13.1 14 Notes Receivable Notes Receivable 14.1 15 Interest Receivable Interest Receivable 15.1 41 Sales Sales 41.1 42 Sales Returns & Allowances Sales Returns & Allowances 42.1 43 Sales Discounts Sales Discounts 43.1 44 Interest Revenue Interest Revenue 44.1 51 Bad Debts Expense Bad Debts Expense 51.1 52 Service Charge Exp. Service Charge Exp. 52.1 11 11.1 12 12.1 13 13.1 14 14.1 15 15.1 16 16.1 17 17.1 18 18.1 19 19.1 51 51.1 52 52.1 53 53.1 54 54.1 55 55.1 61 61.1 Cash Cash Equipment Equipment Accum. Depr.-Equip. Accum. Depr.-Equip. Trucks Trucks Accum. Depr.-Trucks Accum. Depr.-Trucks Mineral Deposits Mineral Deposits Accumulated Depletion Accumulated Depletion Patents Patents Goodwill Goodwill Maintenance Expense Maintenance Expense Depr. Expense - Equipment Depr. Expense - Equipment Depr. Expense - Trucks Depr. Expense - Trucks Depletion Expense Depletion Expense Amoritization Expense Amoritization Expense Gain on Disposal of Assets Gain on Disposal of Assets CHAPTER 9 - ASSIGNMENT 1: Student Name Calculating the Amount of Bad Debts Expense Kimberly Thomas 1. INSTRUCTIONS: Calculate the amount of Estimated Amount of Bad Debts for each of the Aging Categories shown in the Accounts Receivable Schedule below and find the Total of all the Categories. AC C OU N TS CUSTOMER NAME Abbot, Andrea Able, Steve Ackers, Carylon Zwickie, Zack TOTALS % UNCOLLECTIBLE ESTIMATED BAD DEBTS R EC EI VAB LE 1 - 30 Days 328.56 789.23 AGI N G 31 - 60 Days 117.34 59.34 56.43 SCHEDULE 61 - 90 Over 90 Days Days 28.45 298.45 78,499.87 1% 89.45 12,866.74 3% 4,216.74 6% 2,144.98 20% TOTAL $785.00 $386.00 $253.00 $429.00 $1,853.00 A. Compute the amount of the Adjusting Entry for Bad Debts Expense if the Allowance for Doubtful Accounts has a CREDIT Balance of $460.00 because the amount of last year's write off was Overestimated. Desired Ending Credit Bal. Credit Balance in Allow. for in Allow. for Doubtful Accts. Doubtful Accts. from Last Yr. Bad debt expense Allowance for doubtful debts Amount of Adjusting Entry Needed 1,393.0013 B. Compute the amount of the Adjusting Entry for Bad Debts Expense if the Allowance for Doubtful Accounts has a DEBIT Balance of $460.00 because the amount of last year's write off was Underestimated. Desired Ending Credit Bal. Debit Balance in Allow. for in Allow. for Doubtful Accts. Doubtful Accts. from Last Yr. Bad debt expense Allowance for doubtful debts Amount of Adjusting Entry Needed 2,313.0013 ACCT 211 - Assignment Prepared by Barry J. Bomboy Chap. 9 - Page 1 he Amount of Bad Debts Expense Chap. 9 - Page 1 CHAPTER 9 - ASSIGNMENT 2 - PART 1: Posting Accounts & Notes Receivable Transact 1. INSTRUCTIONS: Record each of the Accounts Receivable and Notes Receivable Transactions described below in the General Journal using Accounts from the partial Chart of Accounts shown below. Omit explanations but leave a blank line between transactions. ASSETS 11 - Cash 12 - Accounts Receivable 13 - Allowance for Doubtful Accts. 14 - Notes Receivable 15 - Interest Receivable T# Transaction Description A. EXAMPLE: Sold $1,200 of merchandise to J. Smith on account. B. Customer J. Smith returned $200 of the merchandise purchased on account in Transaction A. C. Customer J. Smith paid the amount owed in Trans. A less the merchandise returned in Trans. B. A 2% discount was granted for prompt payment of his bill. D. C. Jones was charged a monthly interest rate of 1.5% on her store credit card's unpaid bal.of $2,000 E. Total Bad Debts for the month was estimated to be 1% of its net credits sales of $150,000 for the month. REVENUES EXPENSES 41 - Sales 42 - Sales Returns & Allow. 43 - Sales Discounts 44 - Interest Revenue 51 - Bad Debts Expense 52 - Service Charge Expense Account Titles Accounts Receivable Sales P.R. 12 41 Debit 1,200 1,200 Sales return and allowance Accounts receivable 200 Cash Sales discount Accounts receivable 980 20 Interest receivable Interest revenue Bad debt expense Allowance for doubtful accounts Credit 200 1,000 30 30 1,500 1,500 ACCT 211 - Assignment Chap. 9 - Page 2 T# Transaction Description Account Titles F. Customer I. Nopaa's $400 account receivable was Bad debt expense Accounts recievable 400 Accounts receivable Bad debt 400 Cash Accounts receivable 400 written off as uncollectible after repeated attempts to P.R. Debit Credit 400 contact him. G. Customer I. Nopaa showed up after a lengthy trip abroad and paid the amount he owned in full after 400 his account had been written off in Transaction F. (NOTE: His write-off must be reversed and then recorded as collected). H. $8,000 of its Accounts Receivable were factored (sold) to another firm less a 3% service charge fee to raise cash for buying seasonal inventory. I. $700 of merchandise was sold to a customer on a Capital One credit card who reimbursed the store immediately less a 2% service charge fee. J. A 60 day, 8% annual interest rate promissory note for $3,000 was issued to replace the long over due 400 Cash Service charge expesne Accounts receivable 7,760 240 Cash Service charge expense Sales 686 14 Notes receivable Accounts receivable 8,000 700 3,000 3,000 account receivable of customer M. Fundless K. One month's interest accrued and was recorded on the note receivable in Transaction J. Interest receivable Interest revenue 20 20 ACCT 211 - Assignment Chap. 9 - Page 3 T# Transaction Description Account Titles L. The note receivable in Transaction J & the interest Cash Notes receivable Interest receivable Interest revenue 3,040 Accounts receivable Interest receivable Notes receivable 2,000 80 earned in Transaction K along with the remaining interest was collected. M. Another 6 month, 8% interest rate note receivable for $2,000 from Y. Scofflaw was dishonored (not paid) on its due date. P.R. Debit Credit 3,000 20 20 2,000 ACCT 211 - Assignment Chap. 9 - Page 4 ng Accounts & Notes Receivable Transactions CHAPTER 9 - ASSIGNMENT 2 - PART 2: Posting Accounts & Notes Receivable Transact 2. INSTRUCTIONS: Post each of the General Journal Transactions recorded on the previous sheets to the General Ledger Accounts shown below. NOTE: All accounts should have their Normal Balance. Cash T# Debit X Beg. Bal 980 400 7,760 686 3,040 #11 Credit DR. Bal. 1,000 1,980 2,380 10,140 10,826 13,866 Accounts Receivable #12 T# Debit Credit DR. Bal. X Beg. Bal 12,000 A 1,200 13,200 200 13,000 1,000 12,000 400 11,600 8,000 3,600 3,000 600 600 600 600 600 Allow. For Doubtful Accts. #13 T# Debit Credit CR. Bal. Beg. Bal. X 200 1,500 1,700 1,700 1,700 Notes Receivable #14 T# Debit Credit DR. Bal. X Beg. Bal 4,000 3,000 7,000 3,000 4,000 2,000 2,000 Interest Receivable #15 T# Debit Credit DR. Bal. X Beg. Bal 200 20 180 30 150 30 120 Sales T# A Debit #41 Credit CR. Bal. 1,200 1,200 700 1,900 Sales Discounts #43 T# Debit Credit DR. Bal. 20 20 Sales Returns & Allowances #42 T# Debit Credit DR. Bal. 200 200 Interest Revenue #44 T# Debit Credit CR. Bal. 30 30 20 50 20 70 Bad Debts Expense #51 T# Debit Credit DR. Bal. 1,500 1,500 Service Charge Expense #52 T# Debit Credit DR. Bal. 14 14 240 254 ACCT 211 - Assignment Chap. 9 - Page 5 ng Accounts & Notes Receivable Transactions Chap. 9 - Page 5 ACC 211 - CHAPTER 9 - ASSIGNMENT 2: General Ledger Check Figures Compare your figures with the Check Figures below to troubleshoot possible recording or computational errors. CHECK # LEDGER ACCOUNT TITLES 11 Cash 12 Accounts Receivable Figures CREDIT Total # DEBIT CREDIT Total # Balance1 Balance1 Entries1 Balance Balance Entries1 13,866 6 13,866 1 2,710 11 2,710 1 1,700 15 Interest Receivable 1 120 4 120 1 1 2 1,900 - 20 1 20 - 200 1 200 - 70 52 Service Charges Expense 1 2,000 44 Interest Revenue 51 Bad Debts Expense 1,700 4 1,900 43 Sales Returns & Allowances 4 2,000 41 Sales 42 Sales Discounts Figures DEBIT 13 Allowance for Doubtful Accts. 14 Notes Receivable YOUR 3 70 - 1,500 1 1,500 - 254 2 254 - Includes Beginning Balances & Example Transaction ACCT 211 - Assignment Chap. 9 - Page 6 Acct. Error Alert - CHAPTER 9 - ASSIGNMENT 3 - Identifying Parts of a Promissory Note 1. Date of Note is _ _ _ _ _ _ _July 10 _ _ _ _ _$_2,400 July 10, 201X 2. Term of Note is _ _ _ _ _ _ _ _ _ _ _ _ _ 60 days after date I promise to pay to the order of: 3. Due Date of Note is (calculate) Tech Elec Inc. Richmond, VA Thousand _ _ _ _ _ _ _ _ _ _ 8th Sep_ _ _ _ _ _ _ _ _ _ Two _ 4. If the Term of the Note were 2 months instead of 60 days, the Due Date ___________ __ Four Hundred and no/00 Dollars for the value received with annual interest at annual rate of payable at the would now be _ _ _ _ Sep 10_ _ _ _ _ _ _ _ _ _ 5. Principle of Note is _ _ _ _ _ _2400 _ _ _ _ _ 6. Interest Rate of Note is _ _ _ 10%_ _ _ _ _ _ 7. The Interest is _ _ _ _ Simple_ _ _ _ _ _ (Simple / Compound) Interest. 8. The Formula used to Calculate Interest is: Principal _ X_ Rate _ X Time (+ / / x or ). 9. The Amount of Interest on the Note is 10% First National Bank of Washington D.C. Paul Dole____ 10. The Year used to Calculate Interest is _ _ _ _ _ 360 _ _ _days ____ (365 day Calendar / 360 day Banker's) Year. 11. The Maker of this Note is _ _ _ _ _First National bank _ _ _ _ _ _ _ this is a Note _ _ _ _ Receivable _ _ _ _ _ _ _ (Receivable / Payable). 12. The Payee of this Note is _ _ _ _ Tech elec_ _ _ _ _ _ _ _ _ _ to wh this is a Note _ _ _ _ _ Payable_ _ _ _ _ _ (Receivable / Payable (calculate) $ _ _ _ _ _ _ _ 40_ _ _ _ _ _ _ ACCT 211 - Assignment Chap. 9 - Page 7 aker of this Note is _ _ _ _ _First National bank _ _ _ _ _ _ _ _ _ to whom yee of this Note is _ _ _ _ Tech elec_ _ _ _ _ _ _ _ _ _ to whom s a Note _ _ _ _ _ Payable_ _ _ _ _ _ (Receivable / Payable). CHAPTER 10 - ASSIGNMENT 1: Calculating Depreciation, Depletion, & Amortization A. DATA for the Calculation of Depreciation of Equipment using Double Declining Balance Equipment costing $200,000 is planned to be used for 4 years and then sold for an estimated salvage value of $50,000. Compute the table below using he Double Declining Balance method of Depreciation Preliminary Calculations: Straight Line Depreciation Rate = Double Declining Bal. Depr. Rate = CHECK FIGURE: Yr. 3 Book Value 25% 50% $50,000 Year Year 1 Year 2 Year 3 Annual Accumulated Depreciation Depreciation 100,000 50,000 25,000 100,000 150,000 175,000 Book Value 100,000 50,000 25,000 B. DATA for the Calculation of Depletion of a Mine using Units of Production A copper mine was acquired at a cost of $1,900,000. An additional $200,000 was spend building an access road to the mine. Geologists believe the mine contains 400,000 tons of copper & that the land will be worth $100,000 after the copper is removed. The amount of copper extracted during the first three years was as follows: Year 1 - 68,000 tons; Year 2 - 74,000 tons, & Year 3 - 85,000 tons. Complete the table below using Annual Accumulated Book using the Units of Production method of Depletion. Preliminary Calculations: Year Depletion Depletion Value Year 1 Depreciable Cost of Mine = 2,000,000 340,000 340,000 1,760,000 Year 2 Depletion Cost Per Ton of Ore = 5.00 370,000 710,000 1,390,000 Year 3 CHECK FIGURE: Yr. 3 Depletion $425,000 425,000 1,135,000 965,000 C. DATA for the Calculation of the Amortization of Patent using Straight Line Method A patent was purchased a patent from a competitor at a cost of $154,000. The patent has a remaining life of 14 years with no residual value. Compute the table below using the Straight Line Method of Amortization. Preliminary Calculations: Depreciable Cost of Patent = Straight Line Depreciat. Amount = ACCT 211 - Assignment 154,000 11,000 Chap. 10 - Page 1 Year Year 1 Year 2 Year 3 Annual Accumulated Amortization Amortization 11,000 11,000 11,000 11,000 11,000 11,000 Book Value 143,000 143,000 143,000 ng Depreciation, Depletion, & Amortization CHAPTER 10 - ASSIGNMENT 2: Recording Depreciation Transactions 1. INSTRUCTIONS: Record each of the Depreciation Transactions described below in the General Journal Using the Accounts from the partial Chart of Accounts shown below. Omit explanations but leave a blank linle between transactions. ASSETS 11 - Cash 12 - Equipment 13 - Accum. Depr.-Equip. 14 - Trucks 15 - Accum. Depr.-Trucks ASSETS continued 16 - Mineral Deposits 17 - Accum. Depletion 18 - Patents 19 - Goodwill EXPENSES 51 52 53 54 55 - Maintenance Expense - Depr. Exp.- Equipment - Depr. Exp.- Trucks - Depletion Expense - Amoritization Expense T# Transaction Description ACCOUNT TITLES A. EXAMPLE: Paid $58,000 for new Equipment. Equipment Cash An additional $1,000 was paid for delivery & $3,000 for installation and testing. B. The equipment in Transaction A was estimated to have a useful life of 6 years and a salvage value of $8,000. Record the first year's depreciation using the straight line method. C. Discarded an old piece of equipment which had cost $12,000 and had an accumulated depreciation of $8,000 at the time of disposal. D. Assume the equipment in Transaction C was sold for $2,000 instead of being discarded. OTHER REVENUE 61 - Gain on Disposal of Assets P.R. 12 11 DEBIT CREDIT 62,000 62,000 Depreciation expense Accumulated depreciation 9,000 Accumulated depreciation Loss on disposal Equipment 8,000 4,000 Cash Accumulated depreciation Loss on sale of equipment Equipment 2,000 8,000 2,000 9,000 12,000 12,000 ACCT 211 - Assignment T# Transaction Description E. Assume the equipment in Transaction C was sold for $5,000 instead of being discarded. F. Assume that the equipment in Transaction C having a fair market value of $2,000 was traded in for similar new equipment instead & $15,000 in cash was paid. G. Assume that the equipment in Transaction C having a fair market value of $7,000 was traded in for similar new equipment instead & $11,000 in cash was paid. H. 40,000 tons of ore was extracted from a company mine at a depletion rate of $.50 a ton. I. One year of a 14 year patent costing $42,000 expired. J. 5% of the goodwill purchased for $80,000 when the business was bought is amortized. Chap. 10 - Page 2 ACCOUNT TITLES Cash Accumulated depreciation Equipment Gain on sale of equipment P.R. DEBIT 5,000 8,000 12,000 1,000 Loss on exchange Equipment Accumulated depreciation Equipment cash 4,000 15,000 8,000 Equipment Accumulated depreciation Equipment Cash 15,000 8,000 Depletion expense Accumulated depletion Amortization expense Patent 20,000 Amortization expense Goodwill CREDIT 12,000 15,000 12,000 11,000 20,000 3,000 3,000 4,000 4,000 ACCT 211 - Assignment Chap. 10 - Page 3 11 Cash Cash 11.1 12 Accounts Receivable Accounts Receivable 12.1 13 Allowance for Doubtful Accts. Allowance for Doubtful Accts. 13.1 14 Notes Receivable Notes Receivable 14.1 15 Interest Receivable Interest Receivable 15.1 41 Sales Sales 41.1 42 Sales Returns & Allowances Sales Returns & Allowances 42.1 43 Sales Discounts Sales Discounts 43.1 44 Interest Revenue Interest Revenue 44.1 51 Bad Debts Expense Bad Debts Expense 51.1 52 Service Charge Exp. Service Charge Exp. 52.1 11 11.1 12 12.1 13 13.1 14 14.1 15 15.1 16 16.1 17 17.1 18 18.1 19 19.1 51 51.1 52 52.1 53 53.1 54 54.1 55 55.1 61 61.1 Cash Cash Equipment Equipment Accum. Depr.-Equip. Accum. Depr.-Equip. Trucks Trucks Accum. Depr.-Trucks Accum. Depr.-Trucks Mineral Deposits Mineral Deposits Accumulated Depletion Accumulated Depletion Patents Patents Goodwill Goodwill Maintenance Expense Maintenance Expense Depr. Expense - Equipment Depr. Expense - Equipment Depr. Expense - Trucks Depr. Expense - Trucks Depletion Expense Depletion Expense Amoritization Expense Amoritization Expense Gain on Disposal of Assets Gain on Disposal of Assets