Free Land Purchase Contract - Excel by mdr55754

VIEWS: 164 PAGES: 10

Free Land Purchase Contract document sample

More Info
									                                    Student Name:
                                            Class:
                                                     Problem 20-01

Requirement 1:
                   CECIL-BOOKER VENDING COMPANY
                            General Journal

Account                                                 Debit        Credit
To record the change:
Inventory
 Deferred tax liability
 Cumulative effect of accounting change


Requirement 2:
                   CECIL-BOOKER VENDING COMPANY
                     Comparative Income Statements

                                                            2009         2008
Income before taxes
 Income tax expense
Net income

Earnings per share:
Earnings per common share
Given P20-01:

        CECIL-BOOKER VENDING COMPANY

Inventories (average cost basis), 12/31/08   $120,000
Inventories (average cost basis), 12/31/07    124,000
Inventories (FIFO basis), 12/31/08            155,000
Inventories (FIFO basis), 12/31/07            160,000
Tax rate                                          40%
Shares outstanding                            100,000
Income from continuing operations, 2008       400,000
Income from continuing operations, 2009       525,000
                                               Student Name:
                                                       Class:
                                                                 Problem 20-02

Requirement 1:
        PYRAMID CONSTRUCTION COMPANY
                 General Journal

             Account                       Debit        Credit
Construction in process
 Deferred tax liability
 Retained earnings


Requirement 2:
                           PYRAMID CONSTRUCTION COMPANY
                              Comparative Income Statement

                                                     2009           2008
Income before income taxes
  Income tax expense
Net Income


Earnings per share
             50,000
             shares

Requirement 3:
                           PYRAMID CONSTRUCTION COMPANY
                                Statement of Shareholders' Equity
                          For the Years Ended Dec. 31, 2009 and 2008

                                                   Additional                    Total
                                      Common        Paid-in       Retained   Shareholders'
                                       Stock        Capital       Earnings      Equity
Balance at Jan. 1, 2008

 Net income
 Cash dividends
Balance at Dec. 31, 2008

 Net income
 Cash dividends
Balance at Dec. 31, 2009
Given Data P20-02:

             PYRAMID CONSTRUCTION COMPANY

Income tax rate                 40%

         Income Before Income Tax
              % of    Completed                  Income Difference
           Completion Contract                     Tax     After
            Method      Method Difference         Effect    Tax
2007         $90,000     $60,000 $30,000         $12,000 $18,000
2008          45,000      36,000   9,000            3,600    5,400
Total       $135,000     $96,000 $39,000         $15,600 $23,400
2009         $51,000     $46,000  $5,000           $2,000  $3,000

Common shares issued                    50,000
Common shares issued for              $230,000
Dividends paid, 2008 and 2009          $10,000
                  Student Name:
                          Class:
                                   Problem 20-07

Requirement 1:
            MARION COMPANY
         Depletion and Depreciation

Cost of mineral mine:
 Purchase price
 Development costs


Depletion:
 Land resale value
 Estimated ore extracted (tons)
 Depletion per ton

2009
 Ore extracted (tons)
 Depletion

2010
 Ore extracted (tons)
 Revised ore extraction (tons)
 Revised depletion rate
 Depletion

Depreciation:
Structures:
 Building cost
 Depreciation per ton

 2009 depreciation

 Revised depreciation rate
 2010 depreciation

Equipment:
 Equipment cost
 Estimated equipment sale
 Depreciation per ton

 2009 depreciation

 Revised depreciation rate
 2010 depreciation
Requirement 2:
                   MARION COMPANY
                      Book Value

Mineral mine:
Cost
Less accumulated depletion:
 2009 depletion
 2010 depletion
  Book value, 12/31/2010

Structures:
Cost
Less accumulated depreciation:
 2009 depreciation
 2010 depreciation
  Book value, 12/31/2010

Equipment:
Cost
Less accumulated depreciation:
 2009 depreciation
 2010 depreciation
  Book value, 12/31/2010
Given Data P20-07:

                MARION COMPANY

Land purchase                      $1,600,000
Additional development costs         $600,000
Estimated tons extracted              400,000
Land resale value                    $100,000
Building costs                       $150,000
Useful life of buildings                   10 years
New equipments cost                   $80,000
Auction price of equipment             $4,000
2009 ore extracted and sold            50,000 tons
Revised estimated tons extracted      487,500
2010 ore extracted                     80,000 tons
                                                               Student Name:
                                                                       Class:
                                                                                Problem 20-14

Requirement 1:
                    WHALEY DISTRIBUTORS
                       General Journal
                        ($ in millions)

                     Account                 Debit           Credit
a.
Inventory
 Retained earnings
b.
Liability - litigation
 Gain - litigation
 Cash
c.
Retained earnings
 Patent
2009 adjusting entry:
Patent amortization expense
 Patent
d.
No entry to record the change

2009 adjusting entry:
Depreciation expense
 Accumulated depreciation

Calculation of annual depreciation after the change:

Cost
Previous depreciation (calculated below)
Undepreciated cost
Estimated residual value
To be depreciated
Estimated remaining life                             years
New annual depreciation

*Cumulative effect of the change:
                                           SYD
                     2007 depreciation
                     2008 depreciation
               Accumulated depreciation
Requirement 2:
                      WHALEY DISTRIBUTORS
                        Financial Statements

                                                 Shareholders' Net
                           Assets    Liabilities    Equity    Income   Expenses
2007
2007 inventory
Loss contingency
Patent amortization
Depreciation


2008
2007 inventory
2008 inventory
Loss contingency
Patent amortization
Depreciation
Given Data P20-14:

                     WHALEY DISTRIBUTORS

Financial Statements, 12/31/08 (in millions):

                                  Shareholders' Net
            Assets     Liabilities   Equity    Income Expenses
   2007       $740         $330        $410       $210   $150
   2008        820           400        420        230    175

Other information:
(a) Errors in inventory (in millions)
    2007                                $12   overstated
    2008                                $10   understated
(b) Liability accrued                    $7   million
    Lawsuit settlement                   $4   million
(c) Patent cost                         $18   million
    Patent benefit to operations          6   years
(d) Conveyor equipment cost             $30   million
    Conveyor equip. useful life           5   years

								
To top