ACC 557 Homework 3: Chapters 9 and 10 Directions: Answer the following !estions on a separate "icrosoft #ord or $%cel doc!ment& $%plain how'o! reached the answer or show 'o!r work if a mathematical calc!lation is needed( or )oth& *!)mit 'o!r assignment !sing the assignment link in +lack)oard&$%ercisesE9-9& ,resented )elow are selected transactions at -idge Compan' for .015& /an& 1 -etired a piece of machiner' that was p!rchased on /an!ar' 1( .005& 0he machine cost 12.(000 on that date& 3t had a !sef!l life of 10 'ears with no sal4age 4al!e&/!ne 30 *old a comp!ter that was p!rchased on /an!ar' 1( .01.& 0he comp!ter cost 155(000& 3t had a !sef!l life of 5 'ears with no sal4age 4al!e& 0he comp!ter was sold for 115(000&Dec& 31 Discarded a deli4er' tr!ck that was p!rchased on /an!ar' 1( .011& 0he tr!ck cost 133(000& 3t was depreciated )ased on a 26'ear !sef!l life with a 13(000 sal4age 4al!e&Instructions,repare ,r'ce Compan'7s 8o!rnal entries to record the sale of the e!ipment in these fo!r independent sit!ations&a9 *old for 131(000 on /an!ar' 1( .015&)9 *old for 131(000 on "a' 1( .015&c9 *old for 111(000 on /an!ar' 1( .015&d9 *old for 111(000 on :cto)er 1( .015&E9-11& :n /!l' 1( .015( ;riedman 3nc& in4ested 17.0(000 in a mine estimated to ha4e 900(000 tons of oreof !niform grade& D!ring the last 2 months of .015( 100(000 tons of ore were mined and sold&Instructionsa9 ,repare the 8o!rnal entr' to record depletion e%pense&)9 Ass!me that the 100(000 tons of ore were mined( )!t onl' ( mortgage note pa'a)le to @nance the constr!ction of a )!ilding at Decem)er 31( .015& 0he terms pro4ide for semiann!al installment pa'ments of 1.5(000 on /!ne 30 and Decem)er 31&Instructions,repare the 8o!rnal entries to record the mortgage loan and the @rst two installment pa'ments&,ro)lemsP9-7A. 0he intangi)le assets section of *appelt Compan' at Decem)er 31( .015( is presented )elow&0he patent was ac!ired in /an!ar' .015 and has a !sef!l life of 10 'ears& 0he franchise was ac!ired in/an!ar' .01. and also has a !sef!l life of 10 'ears& 0he following cash transactions ma' ha4e affected intangi)le assets d!ring .012&/an& . ,aid 1.7(000 legal costs to s!ccessf!ll' defend the patent against infringement )' another compan'&/an&/!ne De4eloped a new prod!ct( inc!rring 1150(000 in research and de4elopment costs& A patent was granted for the prod!ct on /!l' 1& 3ts !sef!l life is e!al to its legal life&*ept& 1 ,aid 150(000 to an e%tremel' large defensi4e lineman to appear in commercials ad4ertising the compan'7s prod!cts& 0he commercials will air in *eptem)er and :cto)er&:ct& 1 Ac!ired a franchise for 1150(000& 0he franchise has a !sef!l life of 50 'ears&Instructionsa9 ,repare 8o!rnal entries to record the transactions a)o4e&)9 ,repare 8o!rnal entries to record the .012 amortiAation e%pense&c9 ,repare the intangi)le assets section of the )alance sheet at Decem)er 31( .012&P10-1A. :n /an!ar' 1( .015( the ledger of Accardo Compan' contains the following lia)ilit' acco!nts&Acco!nts ,a'a)le15.(000*ales 0a%es ,a'a)le 7(700Bnearned *er4ice -e4en!e12(000D!ring /an!ar'( the following selected transactions occ!rred&/an& 5*old merchandise for cash totaling 1.0(5.0( which incl!des sales ta%es&1. ,erformed ser4ices for c!stomers who had made ad4ance pa'ments of 110(000& ?Credit *er4ice -e4en!e&915 ,aid state re4en!e department for sales ta%es collected in Decem)er .015 ?17(7009&.0 *old 900 !nits of a new prod!ct on credit at 150 per !nit( pl!s sales ta%&.1 +orrowed 1.7(000 from Cirard +ank on a 36month( ( 1.7(000 note&.5*old merchandise for cash totaling 11.(5.0( which incl!des sales ta%es&Instructionsa9 /o!rnaliAe the /an!ar' transactions&ACC 557 Homework 3: Chapters 9 and 10 ?56..6.0159 ,age . of 3ACC 557 Homework 3: Chapters 9 and 10 )9 /o!rnaliAe the ad8!sting entr' at /an!ar' 31 for the o!tstanding note pa'a)le& ?Hint: Bse one6thirdof a month for the Cirard +ank note&9c) ,repare the c!rrent lia)ilities section of the )alance sheet at /an!ar' 31( .015&Ass!me no change in acco!nts pa'a)le&ACC 557 Homework 3: Chapters 9 and 10 ?56..6.0159 ,age 3 of 3