Ch 11 Assigned Homework Solutions EXERCISE 11 3 15 20 minutes a 20 20 1 2 210 3 4 X 20 210 X 711 000 60 000 46 500 for 2014 1 4 X 20 210 X 711 000 60 000 15 500 3 4 X 19 210 X 711 000 60 000 44 175 59 675 for 2015 b 100 20 5 5 X 2 10 3 4 X 10 X 711 000 53 325 for 2014 10 X 711 000 53 325 65 768 for 2015 EXERCISE 11 11 10 15 minutes a No correcting entry is necessary because changes in estimate are handled in the current and prospective periods b Revised annual charge Book value as of 1 1 2015 60 000 7 000 X 5 25 000 Remaining useful life 5 years 10 years 5 years Revised salvage value 4 500 25 000 4 500 5 4 100 Depreciation Expense 4 100 Accumulated Depreciation Machinery 4 100 EXERCISE 11 14 20 25 minutes a Maintenance and Repairs Expense 500 Equipment b 500 The proper ending balance in the asset account is January 1 balance 134 750 Add New equipment Purchases 32 000 Freight 700 Installation 2 700 Less Cost of equipment sold 35 400 23 000 December 31 balance 147 150 1 Straight line 147 150 10 14 715 2 Sum of the years digits 10 9 8 7 6 5 4 3 2 1 55 OR n n 1 2 10 11 2 55 For equipment purchased in 2013 111 750 134 750 23 000 of the cost of equipment purchased in 2013 is still on hand 8 55 X 111 750 For equipment purchased in 2015 10 55 X 35 400 Total 16 255 6 436 22 691 EXERCISE 11 22 15 20 minutes Depletion base 1 190 000 90 000 100 000 200 000 1 380 000 Depletion rate 1 380 000 60 000 23 ton a Per unit material cost 23 ton b 12 31 14 inventory 23 X 8 000 tons 184 000 c Cost of goods sold 2014 23 X 22 000 tons 506 000 EXERCISE 11 16 10 15 minutes a December 31 2014 Loss on Impairment 3 200 000 Accumulated Depreciation Equipment Cost 9 000 000 Less Accumulated depreciation 1 000 000 Carrying amount 8 000 000 Less Fair value 4 800 000 Loss on impairment b 3 200 000 December 31 2015 Depreciation Expense 1 200 000 Accumulated Depreciation Equipment c 3 200 000 New carrying amount 4 800 000 Useful life Depreciation per year 1 200 000 1 200 000 4 years No entry necessary Restoration of any impairment loss is not permitted
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