Brief Exercise 10-02
Riverbed Company incurs the following expenditures in purchasing a truck: cash price $53,000, accident insurance $4,500, sales taxes $2,900, motor vehicle license $100, and painting and lettering $400. What is the cost of the truck?
Cost of the truck
$
Brief Exercise 10-08
On January 1, 2020, the Whispering Winds Company ledger shows Equipment $68,000 and Accumulated Depreciation”Equipment $9,700. The depreciation resulted from using the straight-line method with a useful life of 12 years and salvage value of $2,100. On this date, the company concludes that the equipment has a remaining useful life of only 5 years with the same salvage value.
Compute the revised annual depreciation.
Revised annual depreciation
$
Brief Exercise 10-11 a1-b (Part Level Submission)
Whispering Winds Mining Co. purchased for $9,140,000 a mine that is estimated to have 36,560,000 tons of ore and no salvage value. In the first year, 13,140,000 tons of ore are extracted.
(a1)
Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.)
Depletion cost per unit
$ per ton
(a2)
Prepare the journal entry to record depletion for the first year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(b)
Show how this mine is reported on the balance sheet at the end of the first year.
Whispering Winds Mining Co.Balance Sheet (Partial)
$
:
$
Exercise 10-08 a-b (Part Level Submission) (Video)
Terry Wade, the new controller of Flint Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2020. His findings are as follows.
Date
AccumulatedDepreciation
Useful lifein Years
Salvage Value
Type of Asset
Acquired
Cost
1/1/20
Old
Proposed
Old
Proposed
Building
1/1/14
$821,000
$116,700
40
50
$43,000
$57,500
Warehouse
1/1/15
115,000
22,180
25
20
4,100
20,820
All assets are depreciated by the straight-line method. Flint Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Terry’s proposed changes.
(a)
Compute the revised annual depreciation on each asset in 2020.
Building
Warehouse
Revised annual depreciation
$
