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Accounting chapter 10 application problem

20/11/2021 Client: muhammad11 Deadline: 2 Day

CHAPTER 10 HOMEWORK and CHAPTER 10 QUIZ completed online through McGraw Hill Connect site with my credentials DUE NO LATER THAN Sunday, 04-28-2013

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Upload DOCUMENTS of Chapter 10 TEST submitted to me through homework market DUE NO LATER THAN Sunday 04-28-2013 ---- SEE BELOW:

PROBLEM #1 – 4 points

Classify each of the following as A – ordinary maintenance and repairs, B – asset improvements, or C – extraordinary repairs.

1. Resurfacing a pool in an apartment building. ___________________

2. Installing a new air conditioner in an old building. ___________________

3. Exterior and interior painting. ___________________

4. Fixing damage due to a car accident. ___________________

PROBLEM #2 – 14 points

Equipment acquired at a cost of $126,000 and has a book value of $42,000. Journalize the disposal of equipment under the following independent assumptions. Identify each assumption by letter.

(a)

The equipment had no market value and was discarded.

(b)

The equipment is sold for $53,000.

(c)

The equipment is sold for $27,000.

(d)

The equipment is traded-in for a similar asset. The list price of the new equipment is $63,000. The exchange has no commercial substance.

Journal

Date

Description

Debit

Credit

PROBLEM #3 – 22 points

An asset was purchased January 1, 20XX and the fiscal year ends December 31st. Calculate depreciation expense, accumulated depreciation, and net book value under the straight-line and the double declining balance methods. Round your answers to the nearest whole dollar.

Asset Cost = $200,000 Salvage Value = $25,000 Estimated Life = 8 Years

Straight-line method:

Year

Depreciation Expense

Accumulated Depreciation

Net Book Value


20XX

20X1

20X2

20X3

20X4

20X5

20X6

20X7

Double Declining Balance method:

Year

Depreciation Expense

Accumulated Depreciation

Net Book Value


20XX

20X1

20X2

20X3

20X4

20X5

20X6

20X7

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