Question 13

Sandhill Corporation traded a used truck (cost $22,000, accumulated depreciation $19,800) for a small computer with a fair value of $3,630. Sandhill also paid $550in the transaction.

Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Question 14

The expenditures and receipts below are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses.

(a)

Money borrowed to pay building contractor (signed a note)

$(294,000

)

(b)

Payment for construction from note proceeds

294,000

(c)

Cost of land fill and clearing

10,230

(d)

Delinquent real estate taxes on property assumed by purchaser

7,990

(e)

Premium on 6-month insurance policy during construction

11,280

(f)

Refund of 1-month insurance premium because construction completed early

(1,880

)

(g)

Architect's fee on building

26,210

(h)

Cost of real estate purchased as a plant site (land $201,800and building $54,800)

256,600

(i)

Commission fee paid to real estate agency

8,660

(j)

Installation of fences around property

3,810

(k)

Cost of razing and removing building

11,840

(l)

Proceeds from salvage of demolished building

(4,730

)

(m)

Interest paid during construction on money borrowed for construction

14,230

(n)

Cost of parking lots and driveways

18,650

(o)

Cost of trees and shrubbery planted (permanent in nature)

14,920

(p)

Excavation costs for new building

2,880

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. (Enter receipt amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Item Land Land Improvements Building Other Non-Property, Plant, and Equipment

Question 15

Culver Company purchased machinery for $174,300 on January 1, 2017. It is estimated that the machinery will have a useful life of 20 years, salvage value of $14,700, production of 88,800 units, and working hours of 39,200. During 2017, the company uses the machinery for 16,856 hours, and the machinery produces 24,864 units. Compute depreciation under the straight-line, units-of-output, working hours, sum-of-the-years'-digits, and double-declining-balance methods. (Round intermediate calculations to 5 decimal places, e.g. 1.56487 and final answers to 0 decimal places, e.g. 5,125.)

Depreciation

Straight-line $

Units-of-output $

Working hours $

Sum-of-the-years'-digits $

Double-declining-balance $