1.

Del capítulo 9, resolver:

1. Ejercicio E9-3 página 428,
O’Connor Company ordered a machine on January 1 at a purchase price of $40,000. On the date of delivery, January 2
machine. On January 5, O’Connor paid cash for installation costs relating to the machine amounting to $2,400. On Dece
useful life of 10 year

Required:
1. Indicate the effects (accounts, amounts, and + or −) of each transaction (on January 1, 2, 3, and 5) on the accounting e

Date Assets = Liabilities +

January 1 machine 40,000
January 2 cash machine -10,000 Long term note 30,000
January 3 freight -350
cash for freight 350
January 5 instalation 2400
cash for instalation -2400
December 31 depreciation -$ 3,525 depreciation
26,475 = 26,475

2. Compute the acquisition cost of the machine.

$ 40,000.00

3. Compute the depreciation expense to be reported for the first year.

$ 3,525

4. What should be the book value of the machine at the end of the second year?
y1 $ 3,525
y2 $ 3,525

$ 32,950.00

Philips, F., Libby, R., y Libby, P. (2019). Fundamentals of Financial Accounting (6.ª ed.). New York, NY. EE
 the date of delivery, January 2, the company paid $10,000 on the machine and signed a long-term note payable for the balance. On Janua
amounting to $2,400. On December 31 (the end of the accounting period), O’Connor recorded depreciation on the machine using the stra
useful life of 10 years and an estimated residual value of $4,750.

2, 3, and 5) on the accounting equation. Use the following schedule:

Stockholders’ Equity 1. Straight-line—when usage is the same each period.

2. Units-of-production—when usage varies each period.
3. Declining-balance—when the asset is more efficient (generates m

depreciation -$ 3,525
residual value $ 4,750.00

6.ª ed.). New York, NY. EE. UU.: McGraw-Hill.

e for the balance. On January 3, it paid $350 for freight on the
the machine using the straight-line method with an estimated

each period.
es each period.
more efficient (generates more revenues) in early years but less so over time; also used for tax.
 2. E 9-6 página 429
E9-6 Computing Depreciation under Alternative Methods
LO 9-3
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $22,000. The estimated useful lif
Expected annual production was year 1, 2,000 units; year 2, 3,000
Required:

1. Complete a depreciation schedule for each of the alternative methods. Round answers to the nearest dollar.
1. Straight-line. BALANCE SHEET
INCOME STATEMENT ACCUMULATED
YEAR COMPUTATION DEPRECIATION EXPENSE COST DEPRECIATION
At adquisition 22,000 0
year 1 4,000 4,000 22,000 4,000
Year 2 4,000 4,000 22,000 8,000
Year 3 4000 4,000 22,000 12,000
Year 4 4000 4,000 22,000 16,000
5 Year 5 4000 4,000 22,000 20,000
20,000
Cost 22,000
Residual Value 2,000

2. Units-of-production.
Cost 22,000
Residual Value 2,000
BALANCE SHEET
INCOME STATEMENT ACCUMULATED
YEAR COMPUTATION DEPRECIATION EXPENSE COST DEPRECIATION
At adquisition 22,000 0
year 1 4,000 4,000 22,000 4,000
Year 2 6,000 6,000 22,000 10,000
Year 3 4,000 4,000 22,000 14,000
Year 4 4,000 4,000 22,000 18,000
Year 5 2,000 2,000 22,000 20,000
20,000

3. Double-declining-balance.
Cost 22,000
Residual Value 2,000
Useful life 5 BALANCE SHEET
INCOME STATEMENT ACCUMULATED
YEAR COMPUTATION DEPRECIATION EXPENSE COST DEPRECIATION
At adquisition 22,000 0
year 1 8800 8,800 22,000 8,800
Year 2 5280 5,280 22,000 14,080
Year 3 3168 3,168 22,000 17,248
Year 4 1900.8 1,901 22,000 19,149
Year 5 1140.48 851 22,000 20,000
20,000

Philips, F., Libby, R., y Libby, P. (2019). Fundamentals of Financial Accounting (6.ª ed.). New York, NY. EE. U
22,000. The estimated useful life was five years and the residual value was $2,000. Assume that the estimated productive life of the machi
ear 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units.

the nearest dollar.

ALANCE SHEET
ACCUMULATED
DEPRECIATION BOOK VALUE
0 22,000
4,000 18,000
8,000 14,000
12,000 10,000
16,000 6,000
20,000 2,000

ALANCE SHEET
ACCUMULATED
DEPRECIATION BOOK VALUE
0 22,000
4,000 18,000 y1 2,000
10,000 12,000 y2 3,000
14,000 8,000 y3 2,000
18,000 4,000 y4 2,000
20,000 2,000 y5 1,000
estimated productive life 10,000

ALANCE SHEET
ACCUMULATED
DEPRECIATION BOOK VALUE
0 22,000
8,800 13,200
14,080 7,920
17,248 4,752
 19,149 2,851
20,000 2,000

ª ed.). New York, NY. EE. UU.: McGraw-Hill.

ted productive life of the machine is 10,000 units.
3. Ejercicio E9-14 de la página 432.
E9-14 Computing and Interpreting the Fixed Asset Turnover Ratio from a Financial Analyst’s Perspective
LO 9-7
Apple Inc. Microsoft Corp.
The following data were included in a recent Apple Inc. annual report (in millions):
Images

Required:

1. Compute Apple’s fixed asset turnover ratio for 2014, 2015, and 2016. Round your answer to one decimal place.

= Net Revenue
Fixed Asset tournover ratio
Average Net Fixed Assets

2013 2014 2015 2016

Net Revenue $ 170,910 $ 182,795 $ 233,715 $ 215,640
Average Net Fixed Assets 16,600 20,624 22,471 27,010
$ 182,795 $ 233,715 $ 215,640
18,612 21547.5 24740.5
Answer: 9.8 10.8 8.7

2. During 2016, Microsoft reported a fixed asset turnover ratio of 5.2. Was Apple’s turnover better or worse than Microsoft

Microsoft 2016 5.2

Appel Inc 2016 8.7
El ratio de Apple Inc en 2016 es mejor ya que es más alto y entre mayor sea esta relación implica una mayor eficiencia de l

Philips, F., Libby, R., y Libby, P. (2019). Fundamentals of Financial Accounting (6.ª ed.). New York, NY. EE.
st’s Perspective

wer to one decimal place.

ver better or worse than Microsoft’s in that year?

implica una mayor eficiencia de la empresa

 (6.ª ed.). New York, NY. EE. UU.: McGraw-Hill.