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Accounting II - NEED HELP!!!

Customer Question

I need help answering these problems for my accounting class can you help?

THE ONES IN BOLD ARE ANSWERS I HAVE CHOSEN

1. Bale Company buys land for $100,000 on 12/31/06. As of 3/31/07, the land has appreciated in value to $101,000. On 12/31/07, the land has an appraised value of $103,600. By what amount should the Land account be increased in 2007?
a. $0
b. $1,000
c. $2,600
d. $3,600

2. The term applied to the periodic expiration of a plant asset’s cost is
a. amortization.
b. depletion.
c. depreciation.
d. cost expiration.

3. Which one of the following items is not a consideration when recording periodic depreciation expense on plant assets?
a. Salvage value
b. Estimated useful life
c. Cash needed to replace the plant asset
d. Cost

4.The book value of an asset is equal to the

a. asset's market value less its historical cost.

b. blue book value relied on by secondary markets.

c. replacement cost of the asset.

d. asset's cost less accumulated depreciation.

5. In computing depreciation, salvage value is

a. the fair market valueof a plant asset on the date of acquisition.

b. subtracted from accumulated depreciation to determine the plant asset's depreciable cost.

c. an estimate of a plant asset's value at the end of its useful life.

d. ignored in all the depreciation methods.

6. All the following are needed for the computation of depreciation except
a. training costs of manufacturing personnel.
b. cost.
c. salvage value.
d. estimated useful life.


7. Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?
a. $48,000
b. $52,500
c. $49,500
d. $43,500

8. Equipment with a cost of $150,000 has an estimated salvage value of $10,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours?
a. $37,500
b. $35,000
c. $37,800
d. $36,250

9. A company purchased factory equipment on April 1, 2007, for $48,000. It is estimated that the equipment will have a $6,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2007, is
a. $4,800
b. $4,200
c. $3,150
d. $3,600

10. A company purchased factory equipment on June 1, 2007, for $48,000. It is estimated that the equipment will have a $3,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2007, is
a. $4,500
b. $2,625
c. $2,250
d. $1,875

11. The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method that
a. is used for tax purposes.
b. must be used for financial statement purposes.
c. is required by the SEC.
d. expenses an asset over a single year because capital acquisitions must be expensed in the year purchased.



12. On November 1, 2006, Dark Company places a new asset into service. The cost of the asset is $9,000 with an estimated 5-year life and $1,000 salvage value at the end of its useful life. What is the depreciation expense for 2007 if Dark Company uses the straight-line method of depreciation?
a. $400
b. $1,600
c. $266.67
d. $900

13. On October 1, 2007, Carr Company places a new asset into service. The cost of the asset is $40,000 with an estimated 5-year life and $10,000 salvage value at the end of its useful life. What is the depreciation expense for 2007 if Carr Company uses the straight-line method of depreciation?
a. $1,500
b. $8,000
c. $2,000
d. $4,000

14. On January 1, a machine with a useful life of five years and a residual value of $5,000 was purchased for $25,000. What is the depreciation expense for year 2 under straight-line depreciation?
a. $5,000
b. $15,000
c. $4,000
d. $12,000

15. Which depreciation method is most frequently used in businesses today?
a. Straight-line
b. Declining-balance
c. Units-of-activity
d. Double-declining-balance

16. A plant asset was purchased on January 1 for $40,000 with an estimated salvage value of $8,000 at the end of its useful life. The current year's Depreciation Expense is $4,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $20,000. The remaining useful life of the plant asset is
a. 10 years.
b. 8 years.
c. 5 years.
d. 3 years.






17. The balance in the Accumulated Depreciation account represents the

a. amount charged to expense since the acquisition of the plant asset.

b. cash fund to be used to replace plant assets.

c. amount charged to expense in the current period.

d. amount to be deducted from the cost of the plant asset to arrive at its fair market value.

18. The cost of a long-term asset is expensed

a. in the period in which it is disposed of.
b. when it is paid for.
c. in the period in which it is acquired.
d. as the asset benefits the company.

19. Depreciation is a process of

a. cost accumulation.
b. asset valuation.
c. asset devaluation.
d. cost allocation.

20. Equipment with a cost of $160,000 has an estimated salvage value of $15,000 and an
estimated life of 4 years. It is to be depreciated by the straight-line method. What is the amount of depreciation expense in the first year?
a. $36,250
b. $40,000
c. $41,250
d. $43,750

------------------------------
Use the information below for the following question

Great Company purchased a new van for floral deliveries on January 1, 2006. The van cost $20,000 with an estimated life of 4 years and $4,000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used.

21. What is the depreciation expense for 2006?
a. $10,000.
b. $4,000.
c. $8,000.
d. $5,000.

Submitted: 4 years ago.
Category: Homework
Expert:  Manal Elkhoshkhany replied 4 years ago.

Hello and thank you for addressing your questions to me.

 

Please advise your deadline as well as the name of the book you are using: Title, author's name, and edition

 

Thank you

Customer: replied 4 years ago.

Deadline: is Monday

 

Financial Accounting: Tools for Business Decision Making - 5th edition

 

Authors: Kimmel, Weygandt & Kieso

Expert:  Manal Elkhoshkhany replied 4 years ago.
Ok, I am working on it now anyway Smile
Customer: replied 4 years ago.
ok thank you
Expert:  Manal Elkhoshkhany replied 4 years ago.

Hello

 

Please click here for the solutions

 

 

P.S. If you like my services, please feel free to direct your future posts to me specifically by typing "For BusinessTutor" at the beginning of your post. Should you choose to do this, please try to allow me 48 hours before the deadline. If you need to meet me online for a timed assignment, please advise me of the date and time (EST) you want me to meet you here and I will. Please make sure you take the length of the questions into consideration when making your offer

 

Thank you

Customer: replied 4 years ago.

the solutions that opened up (below)are not pertaining to what I have posted.

 

Im not sure what to make of these

 

 

13. LO.1 (predetermined OH rate) For 2008, Southwest Industrial has a monthly overhead cost formula of $42,900 + $6 per direct hour. The firm's 2008 expected annual capacity is 156,000 direct labor hours to be incurred evenly each month. Making one unit of the company's product requires three direct labor hours. a. Determine the total overhead to be applied per unit of product in 2008. b. Prepare journal entries to record the application of overhead to Work in Process Inventory and the incurrence of $128,550 of actual overhead January 2008, when 12,780 direct labor hours are worked. c. Given the actual overhead labor hours in part (b), how many units would you have expected to be produced in January?

 

 

14. LO.1 (Predetermined OH rate) Cairo Productions applies overhead using a combined rate for fixed and variable overhead. The rate is 125 percent of direct labor cost. During the first three months of the current year, actual costs were incurred as follows: Direct Labor Cost Actual Overhead January $360,000 $440,000 February 330,000 420,000 March 340,000 421,000 a. What amount of overhead was applied to production in each of the three months? b. What was the underapplied or overapplied overhead for each of the three months and for the first quarter?

 

 

 

a. Jan: $360,000 x 1.75 = $630,000

Feb: $330,000 x 1.75 = $577,500

Mar: $340,000 x 1.75 = $595,000

 

b. Jan : Actual - Applied = $640,000 - $630,000 = $10,000 underapplied

Feb: Actual - Applied = $570,400 - $577,500 = $ 7,100 overapplied

Mar: Actual - Applied = $600,000 - $595,000 = $ 5,000 underapplied

 

16. LO.2 (Underapplied and overapplied overhead) At the end of 2008, Westmeier Corporation's accounts showed a $33,000 credit balance in Manufacturing Overhead Control. In addition, the company had a following account balance: Work In Process Inventrory $192,000 Finished Goods Inventory 48,000 Cost of Goods Sold 360,000 a. Prepare the necessary journal entries to close the overhead account if the balance is considered immaterial. b. Prepare the necessary journal entries to close the overhead account if the balance is considered material. c. Which method do you believe is more appropriate for the company and why? 21. LO.4 (High-Low Method) Information about SnoCo's utility cost for the last six months of 2008 follows, The high-low method will be used to develop a cost formula to predict 2009 utility charges, and the number machine hours has been found to be an appropriate cost driver. Data for the first half of 2008 are not being considered because the utility company imposed a significant tare change as of July 1, 2008. Month Machine Hours Utility Cost July 33,750 $6,500 August 34,000 6,100 September 33,150 5,070 October 32,000 5,980 November 31,250 5,750 December 31,000 5,860 a. What is the cost formula for utility expense? b. What is the budgeted utility cost for September 2009 if 33,175 machine hours are projected? 30.

 

LO.6 & LO.7 (Absorption vs. variable costing) Eastern Chemical Company uses variable costing to manage its internal operations. The following data relate to the company's first year of operations, when 50,000 units were produced and 46,000 units were sold. Variable costs per unit Direct material $50 Direct labor 30 Variable overhead

14 Variable selling costs 12 Fixed Costs Selling and Administrative $750,000 Manufacturing 500,000 How much higher (or lower) would the company's first year net income have been if absorption costing had been used rather than variable costing? Show Computations.

 

Expert:  Manal Elkhoshkhany replied 4 years ago.
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Manal Elkhoshkhany, Tutor
Category: Homework
Satisfied Customers: 9476
Experience: More than 5000 online tutoring sessions.
Manal Elkhoshkhany and 3 other Homework Specialists are ready to help you
Customer: replied 4 years ago.
Thank you so much. I would like to use your assistance in the future, are you good with finite math?
Expert:  Manal Elkhoshkhany replied 4 years ago.

No problem at all, unfortunately I am not good with finite math. I can help you with Finance, accounting and statistics though

 

Customer: replied 4 years ago.
I have another assignment similar to the one you did. But its due tomorrow night! I thought I would have time but i dont and I need help. I tried to post it but it does not allow me to post the full thing what do i do?

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