Castaway Co.
Balance Sheet
Assets:
20X1
20X2
Cash
100,000
100,000
Accounts Receivable
48,000
30,000
Inventory
65,000...
Castaway Co.
Balance Sheet
Assets:
20X1
20X2
Cash
100,000
100,000
Accounts Receivable
48,000
30,000
Inventory
65,000
50,000
Prepaid Rent
6,000
12,000
Equipment
125,000
300,000
Accumulated Dep
25,000
35,000
BV of Equipment
100,000
265,000
Land
50,000
20,000
Total Assets
$ 369,000
$ 477,000
Castaway Co.
Income Statement
for 20X2
Revenues
$ 200,000
COGS
75,000
Gross Profit
125,000
Insurance Expense
5,000
Rent Expense
6,000
Supplies Expense
5,000
Depreciation Expense
10,000
Interest Expense
8,000
Net Income
$ 91,000
What is cash paid for...
Mike purchased a piece of manufacturing equipment on January 1,
20X1 for $250,000. The equipment has...
Mike purchased a piece of manufacturing equipment on January 1,
20X1 for $250,000. The equipment has been depreciated using the
straight-line method with a 10-year useful life and no residual
value. At the beginning of 20X6, Mike estimates that the equipment
has a remaining useful life of 5 years, that net cash inflow from
the equipment will be $18,000 per year, and that the fair value of
the equipment is $110,000.
Determine whether the equipment is impaired. If so, what...
Below is a listing of the account balances at the beginning and
end of 20X1 for...
Below is a listing of the account balances at the beginning and
end of 20X1 for Northern Inc.
1/1/X1
12/31/X1
Cash
$ 15,000
$ 8,000
Accounts Receivable
30,000
37,000
Inventory
120,000
130,000
Supplies
4,000
7,000
Equipment
300,000
400,000
Accumulated Depreciation
80,000
100,000
Accounts Payable*
8,000
12,000
Salaries Payable
10,000
15,000
Income Taxes Payable
3,000
1,000
Deferred Revenue
7,000
3,000
Common Stock
200,000
200,000
Retained Earnings
161,000
161,000
Sales Revenue
0
340,000
Sales Discounts
0
15,000
Cost of Goods Sold
0...
Bruins Co. acquired a machine on June 30, 20x1 and gave the
seller a $20,000 cash...
Bruins Co. acquired a machine on June 30, 20x1 and gave the
seller a $20,000 cash down payment and a two year, $100,000,
non-interest bearing note calling for four payments of P&I in
the amount of $25,000 each. The payments are to be made
semi-annually with the first payment beginning on December 31,
20x1. The prevailing rate of interest was 12% APR.
3%
6%
12%
Present Value of Ordinary Annuity of $1 for 4 periods
3.72
3.47
3.04
Present Value...
Marsha Inc. has the following budgeted data for the coming
year:
Cash balance, beginning
$ 15,000...
Marsha Inc. has the following budgeted data for the coming
year:
Cash balance, beginning
$ 15,000
Collections from customers
145,000
Direct materials purchases
25,000
Expenses:
Operating expenses
50,000
Payroll
75,000
Income taxes
6,000
Other:
Machinery purchases
30,000
Operating expenses include $20,000 depreciation for buildings
and equipment. All purchases of materials are paid for in the
period of purchase. The company requires a minimum cash balance of
$25,000.
Compute the amount the company needs to finance or the excess
cash available...
t the beginning of 2017, your company buys a $30,000 piece of
equipment that it expects...
t the beginning of 2017, your company buys a $30,000 piece of
equipment that it expects to use for 4 years. The equipment has an
estimated residual value of 6,000. The company expects to produce a
total of 200,000 units. Actual production is as follows: 42,000
units in 2017, 48,000 units in 2018, 49,000 units in 2019, and
61,000 units in 2020.
Required:
Determine the depreciable cost.
Calculate the depreciation expense per year under the
straight-line method.
Use the straight-line...
Activity: Straight-line Depreciation
Equipment acquired at the beginning of the year at a cost of
$125,000...
Activity: Straight-line Depreciation
Equipment acquired at the beginning of the year at a cost of
$125,000 has an estimate residual value of $5,000 and an estimated
useful life of 10 years.
Determine the:
•Depreciable cost
•Annual straight-line depreciation
•Document the depreciation expense for the 10 years
Formula
Dollar Values
Answer
Year
Depreciation Expense
1
2
3
4
5
6
7
8
9
10
Total
Activity: Units-of-Output
Equipment acquired at the beginning of the year at a cost of
$24,000 has...
Equipment purchased at the beginning of the fiscal year for
$260,000 is expected to have a...
Equipment purchased at the beginning of the fiscal year for
$260,000 is expected to have a useful life of 5 years, or 25,000
operating hours, and a residual value of
$10,000. Compute the depreciation for the first and
second years of use by each of the following methods (worth 35
points) Show work
(a) straight-line
(b) units-of-output (1,200 hours first year; 4,000 hours second
year)
(c) double-declining-balance
Robotix Co. purchases a patent for $23,000 on January 1. The
patent is good for 18...
Robotix Co. purchases a patent for $23,000 on January 1. The
patent is good for 18 years, after which anyone can use the patent
technology. However, Robotix plans to sell products using that
patent technology for only 5 years. Prepare the intangible asset
section of the balance sheet that reports on this patent at the end
of the first year.
ROBOTIX CO.
Balance Sheet
December 31
Assets
Intangible assets
Kegler Bowling buys scorekeeping equipment with an invoice...
Equipment purchased at the beginning of the fiscal year for
$720,000 is expected to have a...
Equipment purchased at the beginning of the fiscal year for
$720,000 is expected to have a useful life of 10 years, or 28,000
operating hours, and a residual value of $10,000. Compute the
depreciation for the first and second years of use by each of the
following methods: (12 points)
(a)
straight-line
(b)
units-of-production (2,200 hours first year; 5,000 hours second
year)
(c)
double declining balance
(Round the answer to the nearest dollar.)