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Ryan Brandon Part 3

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Question 11. Journalize the following transactions for Ryan Company:

July 1 Sold $5,300 of merchandise to Rick on account.
Nov. 1 Exchanged Rick’s account receivable for an eight-month, 6% note for
$5,300.
Dec. 31 Recorded accrued interest on Jim’s note (round to nearest dollar).
July 1 Rick paid off his note with interest (round to nearest dollar).

Question 12. A computer system was purchased on July 1 at a cost of $125,000. It’s
expected to be used for four years and to have a residual value of $5,000 after
8,000 hours of service. The system was used for 1,750 hours the first year and
2,100 hours the second year. Calculate the depreciation expense to the nearest
dollar for the first and second years.
Method
Year 1 Year 2
Straight-line ________ ________
Double-declining-balance ________ ________
Units-of-production ________ ________

Question 13. Prepare journal entries for the following transactions for Ryan Company
in the general journal:
Feb. 28 Machinery that cost $57,000 and had accumulated depreciation of
$46,000 was sold for $2,500.
April 10 A van that cost $23,700 and had accumulated depreciation of
$21,000 was sold for $1,250.
July 16 Equipment that cost $120,000 and had accumulated depreciation
of $112,000 was traded in for new equipment with a fair-market value of
$140,000. The old equipment and $135,000 in cash were given for the new
equipment.

Question 14. Journalize the following treasury stock transactions:
May 1 Reacquired 800 shares of $15 par common stock for $13 per share.
May 7 Sold 400 shares at $11 per share.
May 9 Sold 250 shares at $17 per share.

Question 15. The following information was taken from the financial statements of
Brandon Company for 12/31/10 and12/31/09:
Net income for 2010: $313,000
Depreciation expense for 2010: $28,400
Loss on sale of equipment: $7,300


12/31/10 12/31/09
Accounts Receivable  $46,000 $50,000
Merchandise Inventory  35,000 28,000
Accounts Payable  27,000 24,000
Interest Payable  6,000 8,000

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