Interested in a PLAGIARISM-FREE paper based on these particular instructions?...with 100% confidentiality?

Order Now

On December 31, 2012, before the books were closed, the management and accountants of Madrasa Inc. made the following determinations about three depreciable assets. 1. Depreciable asset A was purchased January 2, 2009. It originally cost $500,000 and, for depreciation purposes, the straight-line method was originally chosen. The asset was originally expected to be useful for 10 years and have a zero salvage value. In 2012, the decision was made to change the depreciation method from straight-line to sum-of-the-years’ digits, and the estimates relating to useful life and salvage value remained unchanged. 2. Depreciable asset B was purchased January 3, 2008. It originally cost $243,000 and, for depreciation purposes, the straight-line method was chosen. The asset was originally expected to be useful for 15 years and have a zero salvage value. In 2012, the decision was made to shorten thetotallife of this asset to 9 years and to estimate the salvage value at $3,200. 3. Depreciable asset C was purchased January 5, 2008. The asset’s original cost was $154,900, and this amount was entirely expensed in 2008. This particular asset has a 10-year useful life and no salvage value. The straight-line method was chosen for depreciation purposes. Additional data: 1. Income in 2012 before depreciation expense amounted to $405,000. 2. Depreciation expense on assets other than A, B, and C totaled $50,100 in 2012. 3. Income in 2011 was reported at $349,000. 4. Ignore allincometax effects. 5. 129,200 shares of common stock were outstanding in 2011 and 2012. (a) Prepare all necessary entries in 2012 to record these determinations. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. (To correct equipment expensed.) (To record depreciation.) Question 4 Accounts Receivable Accumulated Depreciation – Buildings Accumulated Depreciation – Equipment Accumulated Depreciation – Machinery Allowance for Doubtful Accounts Amortization Expense Bad Debt Expense Buildings Cash Commission Expense Commission Payable Construction in Process Copyrights Cost of Goods Sold Dealer’s Fund Reserve Debt Investments Deferred Tax Liability Depreciation Expense Dividend Revenue Due to Customer Equipment Equity Investments Equity Investments (Available-for-sale) Equity Investments (Equity Method) Fair Value Adjustment Fair Value Adjustment (Available-for-Sale) Finance Expense Gain on Disposal of Plant Assets Gain on Sale of Plant Assets Income Summary Insurance Expense Interest Receivable Interest Revenue Inventory Inventory on Consignment Inventory Over and Short Lawsuit Liability Lawsuit Loss Loss Due to Market Decline of Inventory Machinery Maintenance and Repairs Expense No Entry Prepaid Insurance Rent Receivable Rent Revenue Retained Earnings Revenue from Investment Salaries and Wages Expense Salaries and Wages Payable Sales Commission Expense Sales Commission Expense Payable Sales Commissions Payable Sales Revenue Sales Tax Expense Sales Taxes Payable Supplies Supplies Expense Trademarks Trucks Unearned Rent Revenue Unrealized Holding Gain or Loss – Equity Unrealized Holding Gain or Loss – Income Warranty Expense Warranty Liability

On December 31, 2012, before the books were closed, the management and accountants of Madrasa Inc. made the following determinations about three depreciable assets.

1. Depreciable asset A was purchased January 2, 2009. It originally cost $500,000 and, for depreciation purposes, the straight-line method was originally chosen. The asset was originally expected to be useful for 10 years and have a zero salvage value. In 2012, the decision was made to change the depreciation method from straight-line to sum-of-the-years’ digits, and the estimates relating to useful life and salvage value remained unchanged.

2. Depreciable asset B was purchased January 3, 2008. It originally cost $243,000 and, for depreciation purposes, the straight-line method was chosen. The asset was originally expected to be useful for 15 years and have a zero salvage value. In 2012, the decision was made to shorten thetotallife of this asset to 9 years and to estimate the salvage value at $3,200.

3. Depreciable asset C was purchased January 5, 2008. The asset’s original cost was $154,900, and this amount was entirely expensed in 2008. This particular asset has a 10-year useful life and no salvage value. The straight-line method was chosen for depreciation purposes.

Additional data:

1. Income in 2012 before depreciation expense amounted to $405,000.

2. Depreciation expense on assets other than A, B, and C totaled $50,100 in 2012.

3. Income in 2011 was reported at $349,000.

4. Ignore allincometax effects.

5. 129,200 shares of common stock were outstanding in 2011 and 2012.

(a)

Prepare all necessary entries in 2012 to record these determinations. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No. Account Titles and Explanation Debit Credit

1.

2.

3.

(To correct equipment expensed.)

(To record depreciation.)

Question 4

Accounts Receivable

Accumulated Depreciation – Buildings

Accumulated Depreciation – Equipment

Accumulated Depreciation – Machinery

Allowance for Doubtful Accounts

Amortization Expense

Bad Debt Expense

Buildings

Cash

Commission Expense

Commission Payable

Construction in Process

Copyrights

Cost of Goods Sold

Dealer’s Fund Reserve

Debt Investments

Deferred Tax Liability

Depreciation Expense

Dividend Revenue

Due to Customer

Equipment

Equity Investments

Equity Investments (Available-for-sale)

Equity Investments (Equity Method)

Fair Value Adjustment

Fair Value Adjustment (Available-for-Sale)

Finance Expense

Gain on Disposal of Plant Assets

Gain on Sale of Plant Assets

Income Summary

Insurance Expense

Interest Receivable

Interest Revenue

Inventory

Inventory on Consignment

Inventory Over and Short

Lawsuit Liability

Lawsuit Loss

Loss Due to Market Decline of Inventory

Machinery

Maintenance and Repairs Expense

No Entry

Prepaid Insurance

Rent Receivable

Rent Revenue

Retained Earnings

Revenue from Investment

Salaries and Wages Expense

Salaries and Wages Payable

Sales Commission Expense

Sales Commission Expense Payable

Sales Commissions Payable

Sales Revenue

Sales Tax Expense

Sales Taxes Payable

Supplies

Supplies Expense

Trademarks

Trucks

Unearned Rent Revenue

Unrealized Holding Gain or Loss – Equity

Unrealized Holding Gain or Loss – Income

Warranty Expense

Warranty Liability

Interested in a PLAGIARISM-FREE paper based on these particular instructions?...with 100% confidentiality?

Order Now