The accounting for intangible assets and natural resources is very similar to the processes and practices for property, plant, and equipment. The few exceptions arise from the often legal and contractual nature of intangibles and natural resources. Intangible and natural resource assets are also subject to impairment as are tangible assets, and must be written down from time to time if impairment occurs.Complete the problems from Problem Set A in Chapter 18, pages 626 and 627: * 18.7A, Compute and record depletion of natural resources. * 18.8A, Recording impairment of property, plant, and equipment. * 18.9A, Recording intangible asset acquisition, amortization, and impairment. This is from college accounting price haddock farina chapter1-24 Mcgraw-hill-irwin

Problem: 18-7A Problem: 18-8A Problem: 18-9A General Journal Date Description Ref. Debit Credit Student Name: LINDA BAZEMORE Class: Your_Name_APA2121-section_number_Work5b(2)WEEK 5 Problem 18-01A FAIRLEY COMPANY Capitalization Costs 1. Manufacturing Plant: Cost of manufacturing plant 2. Land Cost of land 3. Land Improvements Cost of land improvements Given Data P18-01A FAIRLEY COMPANY Cost of site for new Manufacturing plant on January 6, 2010 Cost to raze existing facility Fair market value of facility razed Amount received from salvage of facility razed Additional costs: Attorney fees Inspection fees Permit to raze facility Fill dirt for site Leveling of site Paving of sidewalks and curbs Building cost of new facility Cost of paving parking area $1,800,000 $8,000 $150,000 $10,000 $3,200 $910 $525 $25,200 $16,000 $97,000 $3,600,000 $98,900 Student Name: Class: Problem 18-02A ILLINIOS COMPANY Depreciation Calculations Straight-Line Method Year 1 2 3 Acquisition Cost Salvage Value Useful Life in Years Annual Accumulated Depreciation Depreciation Sum-of-the-Years'-Digits Method Year 1 2 3 Fraction Cost Less Salvage Annual Accumulated Depreciation Depreciation Double-Declining-Balance Method Year 1 2 3 Beginning Book Value Rate Annual Accumulated Depreciation Depreciation Given Data P18-02A ILLINIOS COMPANY Cost of new equipment Date Purchased Useful life in years Salvage value $225,000 January 4, 2010 4 $25,000 Student Name: Class: Problem 18-03A HALL COMPANY Depreciation Calculations Straight-Line Method Year 2010 2011 2012 Acquisition Cost Salvage Value Useful Life in Years Annual Accumulated Depreciation Depreciation Sum-of-the-Years'-Digits Method Year 2010 2011 2012 Acquisition Cost Salvage Value Total Expected Units of Production Actual Units of Production Cost per Unit Annual Accumulated Depreciation Depreciation Given Data P18-03A HALL COMPANY Cost of new equipment Date Purchased Useful life in years Useful life in units of production Salvage value Actual production data: 2010 units produced 2011 units produced 2012 units produced $250,000 January 5, 2010 5 100,000 $10,000 20,000 28,000 23,000 PROBLEM 18.4A - Computing depreciation and MACRS on assets. 1. Depreciation of computer: 2010 2011 2. MACRS recovery of computer: 2010 2011 3. Depreciation of van: 2010 2011 4. MACRS recovery of van: 2010 2011 Analyze: Student Name: Class: Problem 19-01A CONTEMPORARY COMPUTING GENERAL JOURNAL Adjusting Entries Date 2010 Jan. CONTEMPORARY COMPUTING Balance Sheet January 1, 2010 ASSETS Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Furniture and Equipment Total Assets Description Post Ref Debit Credit Given Data P19-01A CONTEMPORARY COMPUTING January 1, 2010 Balances per Clark's Records Assets Transferred Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Furniture and Equipment Accumulated Depreciation Total Assets Liabilities & Owners' Equity Transferred Accounts Payable Will Clark, Capital Value Agreed to by Partners $20,000 $58,000 2,000 112,000 46,000 $20,000 56,000 334,000 53,600 346,000 71,600 66,000 476,000 491,200 44,000 $432,000 44,000 $447,200 Student Name: Class: Problem 19-02A O'GRADY'S TACKLE CENTER GENERAL JOURNAL Adjusting Entries Date 2011 Jan. O'GRADY'S TACKLE CENTER Balance Sheet January 31, 2011 ASSETS Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Furniture and Equipment Total Assets LIABILITIES Accounts Payable PARTNERS' EQUITY Brittany O'Grady, Capital Inez Loche, Capital Total Partners' Equity Total Liabilities and Partners' Equity Description Post Ref Debit Credit Given Data P19-02A O'GRADY'S TACKLE CENTER Post Closing Trial Balance December 31, 2010 Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Furniture and Equipment Accumulated Depreciation Accounts Payable Capital Totals $3,750 14,900 1,500 44,000 28,100 22,000 $3,000 64,250 $90,750 $90,750 Additional Information Effective date of partnership with Inez Loche Profit and Loss distribution Agreed upon valuations: Accounts Receivable (net) Merchandise Inventory Furniture and Equipment January 1, 2011 50/50 $13,500 $48,900 $11,300 Student Name: Course: Problem 19-03A General Journal Date Description Ref. Debit Credit Student Name: Class: Problem 19-04A TAYLOR ANTIQUES GENERAL JOURNAL Adjusting Entries Date 2010 Dec. Description TAYLOR ANTIQUES Income Statement Year ended December 31, 2010 Net Income for Year Distribution of Net Income Salary Allowance Interest Allowance Remainder of 40:60 ratio Totals French Taylor Larry Willis Total TAYLOR ANTIQUES Statement of Partners' Equities Year ended December 31, 2010 French Taylor Larry Willis Capital Balances, Jan. 1, 2010 Net Income Less: Permanent Withdrawals for Year Normal Withdrawals for Year Capital Balances, Jan. 1, 2010 Total Post Ref Debit Credit Given Data P19-04A TAYLOR ANTIQUES Partnership Information French Taylor annual salary allowance Larry Willis annual salary allowance Interest allowance as a percent of each partner's invested capital French Taylor percent of remaining net income Larry Willis percent of remaining net income French Taylor capital on January 1, 2010 Larry Willis capital on January 1, 2010 Larry Willis permanent withdrawal Net income for 2010 $88,000 $72,000 10% 40% 60% $340,000 $420,000 $80,000 $288,000 Student Name: LINDA BAZEMORE Class: Your_Name_APA2121-section_number_Work5b(2)WEEK 5 Problem 18-01A FAIRLEY COMPANY Capitalization Costs 1. Manufacturing Plant: Cost of manufacturing plant 2. Land Cost of land 3. Land Improvements Cost of land improvements Given Data P18-01A FAIRLEY COMPANY Cost of site for new Manufacturing plant on January 6, 2010 Cost to raze existing facility Fair market value of facility razed Amount received from salvage of facility razed Additional costs: Attorney fees Inspection fees Permit to raze facility Fill dirt for site Leveling of site Paving of sidewalks and curbs Building cost of new facility Cost of paving parking area $1,800,000 $8,000 $150,000 $10,000 $3,200 $910 $525 $25,200 $16,000 $97,000 $3,600,000 $98,900 Student Name: Class: Problem 18-02A ILLINIOS COMPANY Depreciation Calculations Straight-Line Method Year 1 2 3 Acquisition Cost Salvage Value Useful Life in Years Annual Accumulated Depreciation Depreciation Sum-of-the-Years'-Digits Method Year 1 2 3 Fraction Cost Less Salvage Annual Accumulated Depreciation Depreciation Double-Declining-Balance Method Year 1 2 3 Beginning Book Value Rate Annual Accumulated Depreciation Depreciation Given Data P18-02A ILLINIOS COMPANY Cost of new equipment Date Purchased Useful life in years Salvage value $225,000 January 4, 2010 4 $25,000 Student Name: Class: Problem 18-03A HALL COMPANY Depreciation Calculations Straight-Line Method Year 2010 2011 2012 Acquisition Cost Salvage Value Useful Life in Years Annual Accumulated Depreciation Depreciation Sum-of-the-Years'-Digits Method Year 2010 2011 2012 Acquisition Cost Salvage Value Total Expected Units of Production Actual Units of Production Cost per Unit Annual Accumulated Depreciation Depreciation Given Data P18-03A HALL COMPANY Cost of new equipment Date Purchased Useful life in years Useful life in units of production Salvage value Actual production data: 2010 units produced 2011 units produced 2012 units produced $250,000 January 5, 2010 5 100,000 $10,000 20,000 28,000 23,000 PROBLEM 18.4A - Computing depreciation and MACRS on assets. 1. Depreciation of computer: 2010 2011 2. MACRS recovery of computer: 2010 2011 3. Depreciation of van: 2010 2011 4. MACRS recovery of van: 2010 2011 Analyze: Student Name: Class: Problem 19-01A CONTEMPORARY COMPUTING GENERAL JOURNAL Adjusting Entries Date 2010 Jan. CONTEMPORARY COMPUTING Balance Sheet January 1, 2010 ASSETS Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Furniture and Equipment Total Assets Description Post Ref Debit Credit Given Data P19-01A CONTEMPORARY COMPUTING January 1, 2010 Balances per Clark's Records Assets Transferred Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Furniture and Equipment Accumulated Depreciation Total Assets Liabilities & Owners' Equity Transferred Accounts Payable Will Clark, Capital Value Agreed to by Partners $20,000 $58,000 2,000 112,000 46,000 $20,000 56,000 334,000 53,600 346,000 71,600 66,000 476,000 491,200 44,000 $432,000 44,000 $447,200 Student Name: Class: Problem 19-02A O'GRADY'S TACKLE CENTER GENERAL JOURNAL Adjusting Entries Date 2011 Jan. O'GRADY'S TACKLE CENTER Balance Sheet January 31, 2011 ASSETS Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Furniture and Equipment Total Assets LIABILITIES Accounts Payable PARTNERS' EQUITY Brittany O'Grady, Capital Inez Loche, Capital Total Partners' Equity Total Liabilities and Partners' Equity Description Post Ref Debit Credit Given Data P19-02A O'GRADY'S TACKLE CENTER Post Closing Trial Balance December 31, 2010 Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Furniture and Equipment Accumulated Depreciation Accounts Payable Capital Totals $3,750 14,900 1,500 44,000 28,100 22,000 $3,000 64,250 $90,750 $90,750 Additional Information Effective date of partnership with Inez Loche Profit and Loss distribution Agreed upon valuations: Accounts Receivable (net) Merchandise Inventory Furniture and Equipment January 1, 2011 50/50 $13,500 $48,900 $11,300 Student Name: Course: Problem 19-03A General Journal Date Description Ref. Debit Credit Student Name: Class: Problem 19-04A TAYLOR ANTIQUES GENERAL JOURNAL Adjusting Entries Date 2010 Dec. Description TAYLOR ANTIQUES Income Statement Year ended December 31, 2010 Net Income for Year Distribution of Net Income Salary Allowance Interest Allowance Remainder of 40:60 ratio Totals French Taylor Larry Willis Total TAYLOR ANTIQUES Statement of Partners' Equities Year ended December 31, 2010 French Taylor Larry Willis Capital Balances, Jan. 1, 2010 Net Income Less: Permanent Withdrawals for Year Normal Withdrawals for Year Capital Balances, Jan. 1, 2010 Total Post Ref Debit Credit Given Data P19-04A TAYLOR ANTIQUES Partnership Information French Taylor annual salary allowance Larry Willis annual salary allowance Interest allowance as a percent of each partner's invested capital French Taylor percent of remaining net income Larry Willis percent of remaining net income French Taylor capital on January 1, 2010 Larry Willis capital on January 1, 2010 Larry Willis permanent withdrawal Net income for 2010 $88,000 $72,000 10% 40% 60% $340,000 $420,000 $80,000 $288,000