Scribd Logo
Upload

Welcome to Scribd!

  • Name: - I/c

    Uploaded by

    Azyyati Azy
    12 views1 page
    This document appears to be a practice exam for a course on accounting. It contains two questions. The first asks the student to calculate the gain from a nonmonetary asset exchange and make a journal entry to record it. The second asks the student to calculate depreciation expense for machinery using three different methods, given information about its purchase price, salvage value, useful life, and hours of use.

    Original Description:

    Original Title

    t2IA1

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document appears to be a practice exam for a course on accounting. It contains two questions. The first asks the student to calculate the gain from a nonmonetary asset exchange and make a journal entry to record it. The second asks the student to calculate depreciation expense for machinery using three different methods, given information about its purchase price, salvage value, useful life, and hours of use.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views1 page

    Name: - I/c

    Uploaded by

    Azyyati Azy
    This document appears to be a practice exam for a course on accounting. It contains two questions. The first asks the student to calculate the gain from a nonmonetary asset exchange and make a journal entry to record it. The second asks the student to calculate depreciation expense for machinery using three different methods, given information about its purchase price, salvage value, useful life, and hours of use.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    DDW2213 TEST 2 MAY2011

    NAME: _________________________________________________________________________
    I/C: _________________________________________

    QUESTION 1: Nonmonetary exchange

    Equipment that cost $80,000 and has accumulated depreciation of $63,000 is exchanged for similar
    equipment with a fair value of $35,000 and $15,000 cash is received. The exchange lacked
    commercial substance.

    Instructions
    (a) Show the calculation of the gain to be recognized from the exchange.
    (b) Prepare the entry for the exchange.

    QUESTION 2: Depreciation
    Razif Company purchased machinery on January 1, 2010, for $80,000. The machinery is estimated to
    have a salvage value of $8,000 after a useful life of 8 years. Its working hours are estimated at 1,000
    hours. Year-end is December 31.

    Instructions:
    Compute 2010 depreciation expense using the:

    (a) Sum-of-the-years’ digits method


    (b) Double-declining-balance method
    (c) Activity method, assuming that machine usage was 200 hours.

    You might also like