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    Kic02 Nhóm9 Topic2 Ktqt1en

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    Ly Bùi
    1. The document provides details of costs incurred for the purchase and installation of equipment totaling $403,300. This includes purchase costs, taxes, freight, insurance, installation, and testing. 2. Recurring insurance costs after installation are listed as $1,200 annually for insurance and $2,400 for insurance during the first year of operations. 3. The total capitalized cost of the equipment is $403,300.

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    Kic02 Nhóm9 Topic2 Ktqt1en

    Uploaded by

    Ly Bùi
    37 views10 pages
    1. The document provides details of costs incurred for the purchase and installation of equipment totaling $403,300. This includes purchase costs, taxes, freight, insurance, installation, and testing. 2. Recurring insurance costs after installation are listed as $1,200 annually for insurance and $2,400 for insurance during the first year of operations. 3. The total capitalized cost of the equipment is $403,300.

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    Kic02.Nhóm9.Topic2.Ktqt1en

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    1. The document provides details of costs incurred for the purchase and installation of equipment totaling $403,300. This includes purchase costs, taxes, freight, insurance, installation, and testing. 2. Recurring insurance costs after installation are listed as $1,200 annually for insurance and $2,400 for insurance during the first year of operations. 3. The total capitalized cost of the equipment is $403,300.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    37 views10 pages

    Kic02 Nhóm9 Topic2 Ktqt1en

    Uploaded by

    Ly Bùi
    1. The document provides details of costs incurred for the purchase and installation of equipment totaling $403,300. This includes purchase costs, taxes, freight, insurance, installation, and testing. 2. Recurring insurance costs after installation are listed as $1,200 annually for insurance and $2,400 for insurance during the first year of operations. 3. The total capitalized cost of the equipment is $403,300.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    EXERCISES 1

    Note: Below 2 costs are of regular nature and incurred after installation of equipment so the
    expenses will not be added in equipment cost.
    Insurance after equipment placed in Service 1,200
    Insurance for the first year of operations 2,400
    Purchase cost 365,000
    State sales tax 29,200
    Freight costs 5,600
    Insurance while in transit 800
    Installation costs 2,000
    Testing 700
    Capitized Cost of Equipment 403,300

    on of equipment so these
    EXERCISES 2 Unit: ($1,000)

    Required:
    1. Use a T- account to show the balances and changes during 2010 in Boston Beer's: Property, Plan
    and its Accumulated depreciation— Property, Plant, & equipment account. ($ in thousands)

    Property, Plant & Equipment (PPE)


    Acc.Deprec.
    Beg. Balance $ 227,795
    Purchases 13,608 7,391 Disposals
    Acc.Deprec.
    End. Balance 234,012 on disposals

    2. Show the journal entry to record Boston Beer's sale of property, plant, and equipment during 201

    Cash 20
    Accumulated depreciation 6,951
    Loss on disposal 420
    PPE 7,391
    ton Beer's: Property, Plant, and Equipment account
    . ($ in thousands)

    Property Plant &


    Equipment (PPE)
    $ 80,774 Beg. Balance
    17,300 Depreciation Exp.
    6,951

    91,123 End. Balance


    nd equipment during 2010.
    EXERCISES 5

    Average Accumulated Expenditures


    Date Expenditure Time Fraction
    Accumulated Expenditure 12/31/2012 630,000 9/9
    2/28 90,000 7/9
    4/30 180,000 5/9
    7/1 36,000 3/9
    9/30 64,000 0/9
    WEIGHTED AVERAGE
    ACCUMULATED EXPENDITURES FOR
    30 SEP 2023

    INTEREST CAPITALISED IN 2013 60,900

    Accumulated Expenditure 12/31/2012 630,000


    Additional expenditures in 2013 370,000
    Interest capitalised in 2013 60,900
    COMPLETED COST OF LIBRARY 1,060,900

    THEREFORE, COMPLETED COST OF THR LIBRARY IS $ 1.060.900


    AAE
    630,000
    70,000
    100,000
    12,000
    0
    812,000

    Dr Financial Expense 60,900


    Cr Cash 60,900

    R LIBRARY IS $ 1.060.900
    EXERCISES 8
    Depreciation expense per year 3000
    Double-declining rate 10%
    the Sum of Useful Life 55
    Unit of productionAmount
    Beginning rate to 0.06
    Depreciation d End book
    Method period book be
    expense depreciation value
    value
    1. The straight-line method depreciation
    2013 36000 3000 3000 33000
    2014 33000 3000 6000 30000
    2. The double-declining-balance method
    2013 36000 3600 3600 32400
    2014 32400 3240 6840 29160
    3. The sum-of-the-years'-digits method
    2013 36000 30000 5454.5 5454.5 24545.5
    2014 24545.5 5454.5 892.6 6347.1 4562
    4. The units-of-production method
    2013 36000 1500 1500 34500
    2014 34500 5040 6540 29460
    EXERCISES 9

    1. Depreciation value of equipment in 2013


    2. Prepare the journal entry to record the revaluation of the equipment.
    Before re-evaluating %
    Device value 350000 299/325
    Depreciation of fixed assets 25000 299/325
    Remaining value 325000 299/325
    Difference in equipment value after revaluation = $299,000 - $325,000 = -26,000$
    Depreciation difference = $23,000 - $25,000 = -2,000$
    - Entry:
    Dr Cost of revaluation 26000
    Dr Fixed asset depreciation 2000
    Cr Equipment
    3. Calculate depreciation for 2014.
    The remaining useful life of the asset is 78 months
    Depreciation (2014) 46000
    4. Repeat requirement 2 assuming that the fair value of the equipment at the end of 2013 is $338
    Before re-evaluating %
    Device value 350000 338/325
    Depreciation of fixed assets 25000 338/325
    Remaining value 325000 338/325
    Difference in equipment value after revaluation = $338,000 - $325,000 = $13,000
    Depreciation difference = $26,000 - $25,000 = $1,000
    - Entry:
    Dr Equipment 13000
    Cr Depreciation of fixed assets
    Cr Other Income
    25000
    he equipment.
    After re-evaluating
    322000
    23000
    299000
    $325,000 = -26,000$

    28000

    e equipment at the end of 2013 is $338,000.


    After re-evaluating
    364000
    26000
    338000
    $325,000 = $13,000

    1000
    12000

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