acc 422 final exam
Question 12
Pearl Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $459,900. The estimated fair values of the assets are land $87,600, building $321,200, and equipment $116,800. At what amounts should each of the three assets be recorded?
(Round intermediate percentage calculations to 5 decimal places e.g. 18.25124 and final answers to 0 decimal places, e.g. 5,275.)
|
|
Recorded Amount |
| Land |
|
$  Need Help with Your Essay? Our Experts Are Ready to AssistTell us about your assignment and we will find the best writer for your paper Write My Essay For Me |
| Building |
|
|
| Equipment |
|
|
Question 16
Concord Company owns equipment that cost $1,125,000 and has accumulated depreciation of $475,000. The expected future net cash flows from the use of the asset are expected to be $625,000. The fair value of the equipment is $500,000.
Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
|
|
|
|
|
|
|
|
|
|
 |
|
Question 17
Pina Corporation purchases a patent from Blossom Company on January 1, 2017, for $59,000. The patent has a remaining legal life of 16 years. Pina feels the patent will be useful for 10 years. Assume that at January 1, 2019, the carrying amount of the patent on Pina’s books is $47,200. In January, Pina spends $24,000 successfully defending a patent suit. Pina still feels the patent will be useful until the end of 2026.
Prepare the journal entries to record the $24,000 expenditure and 2019 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
|
|
|
|
|
|
|
| (To record expenditure of patents) |
|
|
|
|
|
|
|
|
|
|
| (To record amortization expense) |
|
|
Question 22
Sarasota Inc. is involved in a lawsuit at December 31, 2017.
|
|
|
|
|
Prepare the December 31 entry assuming it is probable that Sarasota will be liable for $954,500 as a result of this suit. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
| December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepare the December 31 entry, if any, assuming it is not probable that Sarasota will be liable for any payment as a result of this suit. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
| December 31, 2017 |
|
|
|
|
|
|
|
Question 23
Flounder Factory provides a 2-year warranty with one of its products which was first sold in 2017. Flounder sold $1,024,400 of products subject to the warranty. Flounder expects $128,520 of warranty costs over the next 2 years. In that year, Flounder spent $74,030 servicing warranty claims. Prepare Flounder’s journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
During 2017
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
12/31/17
|
|
|
|
|
|
|
|
|
|
|
|
|
Question 29
On June 30, 2018, Falk Co. sold equipment to an unaffiliated company for $2,000,000. The equipment had a book value of $1,080,000 and a remaining useful life of 10 years. That same day, Falk leased back the equipment at $12,000 per month for 5 years with no option to renew the lease or repurchase the equipment. Falk’s rent expense for this equipment for the year ended December 31, 2018, should be
|
|
|
|
|
Struggling with paper writing? Look no further, as you have found the ideal paper writing company! We are a reputable essay writing service that offers high-quality papers at affordable prices. On our user-friendly website, you can request a wide range of assignments. Rest assured that our work is entirely original. Each essay is crafted from scratch, tailored to meet the precise requirements of your assignment. We guarantee that it will successfully pass any plagiarism check.
Get Your Assignments Completed by Expert Writers. Hire Essay Helpers for Any Task
Order essays, term papers, research papers, reaction paper, research proposal, capstone project, discussion, projects, case study, speech/presentation, article, article critique, coursework, book report/review, movie review, annotated bibliography, or another assignment without having to worry about its originality – we offer 100% original content written completely from scratch
