Question 1<\/p>\n
Suppose Nike, Inc.<\/b> reported the following plant assets and intangible assets for the year ended May 31, 2014 (in millions): other plant assets $983.5; land $243.3; patents and trademarks (at cost) $547.4; machinery and equipment $2,012.3; buildings $943; goodwill (at cost) $188.9; accumulated amortization $54.1; and accumulated depreciation $2,397.<\/p>\n
Prepare a partial balance sheet for Nike for these items. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.)<\/b><\/p>\n
Question 2<\/b><\/p>\n
Match the statement with the term most directly associated with it.<\/p>\n
Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance<\/p>\n
The allocation of the cost of an intangible asset to expense in a rational and systematic manner.<\/p>\n
A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area.<\/p>\n
Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred.<\/p>\n
The excess of the cost of a company over the fair value of the net assets acquired.<\/p>\n
Question 3<\/p>\n
Wang Co. has delivery equipment that cost $47,610 and has been depreciated $23,640.<\/p>\n
Record entries for the disposal under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)<\/b><\/p>\n
(a)<\/p>\n
It was scrapped as having no value.<\/p>\n
(b)<\/p>\n
It was sold for $36,860.<\/p>\n
(c)<\/p>\n
It was sold for $19,880.<\/p>\n
Question 4<\/b><\/p>\n
Here are selected 2014 transactions of Cleland Corporation.<\/p>\n
Jan. 1<\/p>\n
Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $62,360 and had a useful life of 10 years with no salvage value.<\/p>\n
June 30<\/p>\n
Sold a computer that was purchased on January 1, 2012. The computer cost $35,600 and had a useful life of 4 years with no salvage value. The computer was sold for $4,910 cash.<\/p>\n
Dec. 31<\/p>\n
Sold a delivery truck for $9,290 cash. The truck cost $24,190 when it was purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $4,090 salvage value.<\/p>\n
Question 5<\/b><\/p>\n
The financial statements of Tootsie Roll are presented below.<\/p>\n
TOOTSIE ROLL INDUSTRIES, INC<\/b><\/p>\n
Question 6<\/b><\/p>\n
The financial statements of The Hershey Company and Tootsie Roll are presented below.<\/p>\n
Question 7<\/b><\/p>\n
At December 31, 2014, Navaro Corporation reported the following plant assets.<\/p>\n
Land<\/p>\n
$ 4,122,000<\/p>\n
Buildings<\/p>\n
$36,260,000<\/p>\n
Less: Accumulated depreciation\u2014buildings<\/p>\n
16,384,950<\/p>\n
19,875,050<\/p>\n
Equipment<\/p>\n
54,960,000<\/p>\n
Less: Accumulated depreciation\u2014equipment<\/p>\n
6,870,000<\/p>\n
48,090,000<\/p>\n
Total plant assets<\/p>\n
$72,087,050<\/p>\n
Question 8<\/b><\/p>\n
Presented below is an aging schedule for Bosworth Company.<\/p>\n
Customer<\/b><\/p>\n
Total<\/b><\/p>\n
Not Yet Due<\/b><\/p>\n
Number of Days Past Due<\/b><\/p>\n
1\u201330<\/b><\/p>\n
31\u201360<\/b><\/p>\n
61\u201390<\/b><\/p>\n
Over 90<\/b><\/p>\n
Aneesh<\/p>\n
$ 29,000<\/p>\n
$ 10,000<\/p>\n
$19,000<\/p>\n
Bird<\/p>\n
42,100<\/p>\n
$ 42,100<\/p>\n
Cope<\/p>\n
52,100<\/p>\n
6,700<\/p>\n
7,500<\/p>\n
$37,900<\/p>\n
DeSpears<\/p>\n
48,500<\/p>\n
$48,500<\/p>\n
Others<\/p>\n
134,600<\/p>\n
93,100<\/p>\n
31,300<\/p>\n
10,200<\/p>\n
$306,300<\/p>\n
$141,900<\/p>\n
$48,800<\/p>\n
$29,200<\/p>\n
$37,900<\/p>\n
$48,500<\/p>\n
Estimated percentage uncollectible<\/p>\n
5%<\/p>\n
7%<\/p>\n
10%<\/p>\n
30%<\/p>\n
66%<\/p>\n
Total estimated bad debts<\/p>\n
$ 56,811<\/p>\n
$ 7,095<\/p>\n
$3,416<\/p>\n
$2,920<\/p>\n
$ 11,370<\/p>\n
$32,010<\/p>\n","protected":false},"excerpt":{"rendered":"
Question 1 Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2014 (in millions): other plant assets $983.5; land $243.3; patents and trademarks (at cost) $547.4; machinery and equipment $2,012.3; buildings $943; goodwill (at Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50195","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=50195"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50195\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=50195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=50195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=50195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}