Iycee Charles de Gaulle Summary Final Exam Questions Essay

Final Exam Questions Essay

Calculate the salvage value of a forklift purchased Jan 1, 2009 for $40,000, with a 7 year useful life, that uses straight line depreciation and has a annual depreciation of $5,000. 5,000= (40000 – X) / 7 (x or salvage value) = 5,000 Depreciation = (cost- salvage value)/ estimated useful life 2. On January 4, 2007, Bloomberg Company purchased new equipment for $204,000 that had a useful life of four years and a salvage value of $20,000. a.

Prepare a schedule showing the annual depreciation and end-of-year accumulated depreciation for the first three years of the asset’s life under the: I. Straight-line method Year 1 158,000 (-46,000) Year 2 112,000 (-46,000) Year 3 66,000 (-46,000) II. Sum-of-the-years digits method Year 1 122,400 (-81,600) Year 2 85,680 (-36,720) Year 3 68,544 (-17,136) III. Double- declining- balance method Year 1 122,400 (-81,600) Year 2 73,440 (-48,960) Year 3 44,064 (-29,376) . If the sum of the year’s digits method is used to compute depreciation, what would be the book value of the asset at the end of 2008. $122,400 3. Blake Kredell owns and operates a retail business called Blake’s Camera Shop. His postclosing trial balance on December 31, 2006, is provided below. Blake plans to enter into partnership with Carmen Santos, effective January 1, 2007. Profits and losses will be shared equally. Blake will transfer all assets and liabilities of his store to the partnership, after revaluation.

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Santos will invest cash equal to Blake’s investment after revolution. The agreed values are: Accounts Receivable (net), $7,500; Merchandise Inventory, $27,000; and Store Equipment, $8,000. The partnership will operate under the name. Picture Perfect. Record each partner’s investment on page. 1 of a general journal. Omit descriptions. BLAKE’S CAMERA SHOP Postclosing Trail Balance December 31, 2006 ACCOUNT NAMEDEBITCREDIT Cash6,000 Accounts Receivable 8,000 Allowance for Doubtful Accounts200 Merchandise Inventory26,000 Store Equipment12,000

Accumulated Depreciation Store8,000 Equipment Account Payable5,000 Blake Kredell, Capital38,000 Total52,00052,000 Use the following information to complete the Excel Spreadsheet 4. The Mayfair Corporation was organized on August 1, 2012. The firm is authorized to issue 80,000 shares of no-par-value common stock with a stated value of $20 per share and 20,000 shares of $50 par-value, 12 percent preferred stock. Record the selected transactions on page one of a general journal. Omit descriptions. Aug. 1. Issued 600 shares of common stock to Justin Baker for $20 a share. 1.

Issued 450 shares of preferred stock to Austin Moore at par value. 6. Issued 300 shares of common stock to Mandie Brown for $24 a share. 10. Received a subscription for 800 shares of preferred stock from Lauren Durio for $55 a share, payable in two installments due on the 15th and 31st of August. 15. Received payment of stock subscription installment due from Lauren Durio(one-half of the purchase price). 31. Received the balance due on the stock subscription of August 10 from Lauren Durio. Issued the Stock. Use the following information to complete the excel spread sheets. 5.

After all revenue and expense accounts, other than Income Tax Expense, have been extended to the Income Statement section of the worksheet of Tyler Corporation, the net income is determined to be $75,000. Using the following corporate income tax rates, compute the corporation’s federal income taxes payable. (Assume that the firm’s taxable income is the same as its income for financial accounting purposes) Taxable IncomeTax Rate First $50,00015 percent= 7,500 Next $25,00025 percent= 6250 Next $25,00034 percent Next $235,00039 percent Over $335,000See IRS publications $13,750