R U Ready acquired Machine B on 1 1 13 by signing a 9 installment note to be paid in 5 equal installments of $65,000 Each payment is due on 12 31, with the first payment due 12 31 13 The useful life of Machine B is 8 years with no residual value Assume double declining balance depreciation On 1 1 10, R U Ready issued $100,000, 6 5 , 10 year bonds at an effective rate of 4 75 Interest is paid annually on 12 31 of each year R U Ready acquired land with a FMV of $220,000 on 1 1 14 by issuing a 3 year non interest bearing note due 12 13 16 Assume 8 as the effective rate of interest (You are not provided the face value of the note, but have enough information to determine it ) present the accounts and dollar amounts that would appear on comparative balance sheets and income statements for the years ending 12 31 16 and 12 31 15 (See the example listed above, answers to which are provided in the template ) Please submit one solution workbook per group An excel workbook is attached below, which is a template to use to create comparative balance sheets and income statements for R U Ready for the calendar years ending 12 31 16 and 12 31 15 List all accounts and dollar amounts Round dollar amounts to the nearest dollar You do not need to include cash Also, you do not need to worry about the classification of cash flows in the t accounts You have been provided with a separate worksheet for each situation Please show your work in each worksheet and the impact on the financial statements in the matrix provided on each worksheet For the Classification (Class) column of the Balance Sheet use A for Asset L for Liability E for Equity For the Classification (Class) column of the Income Statement use R for Revenue E for Expense Excel sheet is for question 3 Please answer question 3 $0 Balance $0 $0 $0 $0 $0 ASSETS INCOME STATEMENT LIABILITIES EQUITY Balance Sheet Income Statement Dec Period Ending 12131 2015 Inc Dec Inc Dec Inc Dec Inc Period Ending 12 31 2016 12 31 2016 Cash Interest Exp Class Account 12 31 2015 Class Account Beg $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PAYMENT YR NUMBER PAYMENT INTEREST REDUCTION BALANCE Inception 1 $0 7 3 4 5 6 8 10 TOTAL $0 $0 $0 $0 Balance $0 $0 $0 $0 $0 ASSETS INCOME STATEMENT LIABILITIES EQUITY Balance Sheet Income Statement Dec Period Ending 12131 2015 Inc Dec Inc Dec Inc Dec Inc Period Ending 12 31 2016 12 31 2016 Cash Interest Exp Class Account 12 31 2015 Class Account Beg $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PAYMENT YR NUMBER PAYMENT INTEREST REDUCTION BALANCE Inception 1 $0 7 3 4 5 6 8 10 TOTAL $0 $0 $0

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R. U. Ready acquired Machine B on 1/1/13 by signing a 9% installment note to be paid in 5 equal installments of $65,000. Each payment

R. U. Ready acquired Machine B on 1/1/13 by signing a 9% installment note to be paid in 5 equal installments of $65,000. Each payment is due on 12/31, with the first payment due 12/31/13. The useful life of Machine B is 8 years with no residual value. Assume double declining balance depreciation.
On 1/1/10, R-U Ready issued $100,000, 6.5%, 10-year bonds at an effective rate of 4.75%. Interest is paid annually on 12/31 of each year.
R-U Ready acquired land with a FMV of $220,000 on 1/1/14 by issuing a 3-year non-interest-bearing note due 12/13/16. Assume 8% as the effective rate of interest. (You are not provided the face value of the note, but have enough information to determine it.)

present the accounts and dollar amounts that would appear on comparative balance sheets and income statements for the years ending 12/31/16 and 12/31/15. (See the example listed above, answers to which are provided in the template.)

Please submit one solution workbook per group. An excel workbook is attached below, which is a template to use to create comparative balance sheets and income statements for R-U Ready for the calendar years ending 12/31/16 and 12/31/15.
List all accounts and dollar amounts. Round dollar amounts to the nearest dollar. You do not need to include cash. Also, you do not need to worry about the classification of cash flows in the t-accounts. You have been provided with a separate worksheet for each situation. Please show your work in each worksheet and the impact on the financial statements in the matrix provided on each worksheet.
For the Classification (Class) column of the Balance Sheet use:
A for Asset
L for Liability
E for Equity

For the Classification (Class) column of the Income Statement use:

R for Revenue
E for Expense

*Excel sheet is for question 3. Please answer question 3

image text in transcribed

$0 Balance $0 $0 $0 $0 $0 ASSETS INCOME STATEMENT LIABILITIES EQUITY Balance Sheet Income Statement Dec Period Ending 12131/2015 Inc Dec Inc Dec Inc Dec Inc Period Ending 12/31/2016 12/31/2016 Cash Interest Exp Class: Account 12/31/2015 Class: Account Beg $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PAYMENT YR NUMBER PAYMENT INTEREST REDUCTION BALANCE Inception 1 $0 7 3 4 5 6 8 10 TOTAL $0 $0 $0 $0 Balance $0 $0 $0 $0 $0 ASSETS INCOME STATEMENT LIABILITIES EQUITY Balance Sheet Income Statement Dec Period Ending 12131/2015 Inc Dec Inc Dec Inc Dec Inc Period Ending 12/31/2016 12/31/2016 Cash Interest Exp Class: Account 12/31/2015 Class: Account Beg $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PAYMENT YR NUMBER PAYMENT INTEREST REDUCTION BALANCE Inception 1 $0 7 3 4 5 6 8 10 TOTAL $0 $0 $0