Problem Topik 21
Aktiva Tetap Berwujud dan Tidak
Berwujud serta Sumberdaya Alam
P21-1 Ripley Company was organized on January. During the first year of
operations, the following plant asset expenditures and receipts were
recorded in random order
Debit
1.
2.
3.
4.
5.
6.
7.
8.
9.
Accrued real estate taxes paid at time of purchase of real estate
Real estate taxes on land paid for the current year
Full payment to building contractor
Excavation cost for new building
Cost of real estate purchased as a plant site (land $100,000 and
building $25,000
Cost of parking lots and driveways
Architect’s fees on building plants
Installation cost of fences around property
Cost of demolishing building to make land suitable for
construction of new building
Credit
10. Proceeds from salvage of demolished building
$
2,000
3,000
600,000
25,000
125,000
15,000
10,000
4,000
21,000
805,000
2,500
Instructions
Analyze the foregoing transaction using the following column headings.
Insert the number of each transaction in the Item space, and insert the
amounts in the appropriate columns. For amounts entered in the Other
Accounts column, also indicate the account title
Solution 21-1
Item
1
2
3
4
5
6
7
8
9
10
Land
($ 2,000)
Building
Other Accounts
$ 3,000
Property Taxes Expense
$600,000
25,000
125,000
15,000
Land Improvements
4,000
Land Improvements
10,000
( 21,000)
( (2,500)
($145,500)
$635,000
P21-2 At December 31, 2005, Walton Company reported
the following as plant assets
Land
Buildings
Less: Accumulated depreciationbuildings
Equipment
Less: Accumulated depreciationequipment
Totals plant assets
$ 3,000,000
$ 26,500,000
12,100,000
40,000,000
5,000,000
14,400,000
35,000,000
$52,400,000
During 2006, the following selected cash transaction occurred
April 1 Purchased land for 2,200,000
May 1 Sold equipment that cost $750,000 when purchased on January 1, 2002.
The equipment was sold for $460,000
June 1 Sold land purchased on June 1, 1996, for $1,800,000. The land cost
$300,00.
July 1 Purchased equipment for $2,400,000
Dec 31 Retired equipment that cost $500,000 when purchased on December 31,
1996. No salvage value was received
Instructions
a) Journalize the above transaction. Walton uses
straight-line depreciation for building and
equipment. The buildings are estimated to have
a 50-year useful life and no salvage value. The
equipment is estimated to have a 1 year useful
life and no salvage value. Update depreciation
on assets disposed of at the time of sale or
retirement.
b) Record adjusting entries for depreciation for
2006.
c) Prepare the plant assets section of Walton’s
balance sheet at December 31, 2006.
Solution 21-2
(a) Apr. 1
May 1
1
Land...................................................
Cash...........................................
2,200,000
Depreciation Expense .....................
Accumulated Depreciation—
Equipment ............................
($750,000 X 1/10 X 4/12)
25,000
Cash ..................................................
Accumulated Depreciation—
Equipment ....................................
Equipment.................................
Gain on Disposal .....................
460,000
Cost
Accum. depreciation—
equipment
$750,000
325,000
[($750,000 X 1/10 X 4) + $25,000]
Book value
Cash proceeds
Gain on disposal
425,000
460,000
$ 35,000
2,200,000
25,000
325,000
750,000
35,000
June 1
July 1
Dec. 31
31
Cash ..................................................
Land...........................................
Gain on Disposal .....................
1,800,000
Equipment ........................................
Cash...........................................
2,400,000
Depreciation Expense .....................
Accumulated Depreciation—
Equipment ............................
($500,000 X 1/10)
50,000
Accumulated Depreciation—
Equipment ....................................
Equipment.................................
Cost
Accum. depreciation—
equipment
$500,000
500,000
($500,000 X 1/10 X 10)
Book value
$
0
300,000
1,500,000
2,400,000
50,000
500,000
500,000
(b) Dec. 31
31
Depreciation Expense .....................
Accumulated Depreciation—
Buildings...............................
($26,500,000 X 1/50)
530,000
Depreciation Expense .....................
Accumulated Depreciation—
Equipment ............................
3,995,000
($38,750,000* X 1/10)
$3,875,000
[($2,400,000 X 1/10) X 6/12]
120,000
$3,995,000
*($40,000,000 – $750,000 – $500,000)
530,000
3,995,000
(c)
WALTON COMPANY
Partial Balance Sheet
December 31, 2006
Plant Assets*
Land .......................................................
Buildings ...............................................
Less: Accumulated depreciation—
buildings................................
Equipment.............................................
Less: Accumulated depreciation—
equipment .............................
Total plant assets.........................
*See T-accounts which follow.
$ 4,900,000
$26,500,000
12,630,000
41,150,000
13,870,000
8,245,000
32,905,000
$51,675,000
Bal.
Apr. 1
Bal.
Land
3,000,000 June 1
2,200,000
4,900,000
Bal.
Bal.
300,000
Buildings
26,500,000
26,500,000
Accumulated Depreciation—Buildings
Bal.
12,100,000
Dec. 31 adj.
530,000
Bal.
12,630,000
Bal.
July 1
Bal.
Equipment
40,000,000 May 1
2,400,000 Dec. 31
41,150,000
750,000
500,000
Accumulated Depreciation—Equipment
May 1
325,000 Bal.
5,000,000
Dec. 31
500,000 May 1
25,000
Dec. 31
50,000
Dec. 31 adj. 3,995,000
Bal.
8,245,000
P21-3 The intangible assets section of Whitley Company at
December 31, 2005, is presented below
Jan. 2
Paid $18,000 legal cost to successfully defend the patent
against infringement by another company
Jan.-June Develop a new product, incurring $140,000 in research and
development costs. A patent was granted for the product on
July 1. Its useful life is equal to its legal life.
Sept. 1
Paid $50,000 to an extremely large defensive lineman to
appear in commercials advertising the company’s products.
The commercials will air in September and October.
Oct. 1
Acquired a franchise for $80,000. The franchise has a useful
life of 50 years.
Instruction
a) Prepare journal entries to record the transaction above
b) Prepare journal entries to record the 2006 amortization expense.
c) Prepare the intangible assets section of the balance sheet at
December 31, 2006.
Solution 21-3
(a) Jan. 2
Jan.June
Research and Development
Expense ...............................................
Cash..................................................
Sept. 1
Oct.
Patents .....................................................
Cash..................................................
1
(b) Dec. 31
18,000
18,000
140,000
140,000
Advertising Expense ..............................
Cash..................................................
50,000
Franchise .................................................
Cash..................................................
80,000
Amortization Expense—Patents...........
Patents .............................................
9,000
50,000
80,000
9,000
[($70,000 X 1/10) + ($18,000 X 1/9)]
31
Amortization Expense—Franchise.......
Franchise .........................................
[($48,000 X 1/10) + ($80,000 X 1/50 X 3/12)]
5,200
5,200
(c) Intangible Assets
Patents ($88,000 cost – $16,000 amortization) (1) ...............
Franchise ($128,000 cost – $24,400 amortization) (2) .........
Total intangible assets ....................................................
$ 72,000
103,600
$175,600
(1) Cost ($70,000 + $18,000); amortization ($7,000 + $9,000).
(2) Cost ($48,000 + $80,000); amortization ($19,200 + $5,200).