Assignment Of Acc 110

Exercise 2-2 Your answer is correct. The assets (in thousands) that follow were taken from the December 31, 2010, balance sheet for Big Rock Brewery : Accounts receivable $1,789 Accumulated amortization—buildings 3,304 Accumulated amortization—furniture and Fxtures 1,818 Accumulated amortization—production equipment 18,648 Accumulated amortization—vehicles 890 Buildings 11,879 Cash 769 ±urniture and Fxtures 2,328 Inventories 4,471 Land 2,516 Prepaid expenses and other 397 Production equipment 33,871 Vehicles 1,101 Prepare the assets section of the statement of Fnancial position. (List current assets in order of liquidity. List non-current assets in order of permanency. Show all amounts in thousands of dollars.) BIG ROCK BREWERY Statement of Financial Position (partial) December 31, 2010 (in thousands) Assets $ $ $ Current Assets Cash 769 Accounts Rec 1789 Merchandise I 4471 Prepaid Expen 397 Total Current Assets 7426 Property, Plant, and Equipment Land 2516

Exercise 9-2 Hohnberger Enterprises purchased equipment on March 15, 2012, for $95,400. The company also paid the following amounts: $600 for delivery charges; $360 for insurance while the equipment was in transit; $1,320 for a one-year insurance policy; $1,970 to train employees to use the new equipment; and $1,920 for testing and installation. The equipment was ready for use on April 1, 2012, but the company did not start using it until May 1, 2012. Hohnberger has estimated the equipment will have a 10-year useful life with no residual value. It expects to consume the equipment’s future economic beneFts evenly over the useful life. The company has a December 31 year end. (a) Your answer is correct. Calculate the cost of the equipment. Cost of the equipment $ (b) Your answer is correct. When should the company begin depreciating the equipment: March 15, April 1, or May 1? (c) Your answer is correct. Which depreciation method should the company use? (d) Your answer is correct. Using the method chosen in (c), calculate the depreciation on the equipment for 2012. 98280 April 1 Straight line method

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