Purchased goods 550,000.

00

AP balance 1,000,000.00
a. 100,000.00
d. (300,000.00)
800,000.00

physical count 920,000.00

1 27,000.00
2 52,500.00
3 12,500.00
1,012,000.00

1
AP 930,000.00
1 400,000.00
2 with discount 147,000.00
3 without discount 200,000.00
1,677,000.00

Net method Gross method

Aug 1 Purchases 784,000.00 Aug 1 Purchases

AP 784,000.00 AP

Purchases 980,000.00 Purchases

AP 980,000.00 AP

Aug 16 AP
Aug 16 AP 784,000.00 PD
Cash 784,000.00 Cash

Aug 31 AP 980,000.00 Aug 31 AP

PD lost 20,000.00 Cash
Cash 1,000,000.00

CGAS 1,764,000.00 CGAS 1,784,000.00

2
Purchases
Jan 10 200,000.00
Feb 2 330,000.00
CGAS 530,000.00
CGAS in units 5,000.00
Unit cost 106.00
ending inventory
Jan 10 2,000.00
Jan 31 (1,000.00)
Feb 2 3,000.00
Feb 9 100.00
Feb 28 (1,100.00) 3,000.00
Total ending inventory 318,000.00

Beginning inventory 300,000.00

Purchases
April 3 525,000.00
October 1 1,000,000.00 1,525,000.00
CGAS 1,825,000.00
CGAS in units 1,000.00
Cost per unit 1,825.00
Ending inventory 200.00
Ending inventory cost 365,000.00

Beginning inventory 2,708,000.00

Purchases
Aug 5 1,300,000.00
Aug 9 1,512,000.00
Aug 12 1,800,000.00
Aug 25 1,736,000.00 6,348,000.00
CGAS 9,056,000.00
Ending inventory 1,856,000.00
COGS (12M-4.8M) 7,200,000.00

3
to solve for ending inventory cost
Units Total
Most recent cost 124.00 14,000.00 1,736,000.00
Next recent cost 120.00 1,000.00 120,000.00
15,000.00 1,856,000.00

CGAS 150,000.00
COGS 100,000.00
END INV 50,000.00

most recent 180.00 10,000.00 1,800,000.00

next recent 150.00 40,000.00 6,000,000.00
Ending cost 7,800,000.00
LCNRV cost 7,200,000.00
Allowance for writedown 600,000.00
Beginning IW 800,000.00
Reversal on IW 200,000.00

CGAS 20,400,000.00
Ending cost 7,800,000.00
COGS 12,600,000.00
Reversal on IW 200,000.00
COGS after IW 12,400,000.00

1,665,000.00

4
 Cost Retail
CGAS-average 2,755,000.00 4,750,000.00
Net sales (3,500,000.00)
End inv at retail 1,250,000.00
rate 58%
end inc at cost 725,000.00

CGAS-cost 2,755,000.00
end inv at cost 725,000.00
COGS 2,030,000.00

Beginning inventory 200,000.00

Purchases 4,821,600.00
CGAS 5,021,600.00
COGS 4,320,000.00
Ending inventory 701,600.00

5
Retirement method

2020
Tools 240,000.00
Cash 240,000.00

Cash 30,000.00
Depreciation 90,000.00
tools 120,000.00

Ending balance of tools 440,000.00

2021
Tools 720,000.00
Cash 720,000.00

Cash 98,000.00
Depreciation 222,000.00
Tools 320,000.00

Ending balance of tools 840,000.00

Replacement method

2020
Tools 60,000.00
Depreciation 180,000.00
Cash 240,000.00

Cash 30,000.00
Depreciation 30,000.00

Ending balance of tools 380,000.00

2021
Tools 160,000.00
Depreciation 560,000.00
Cash 720,000.00

Cash 98,000.00
Depreciation 98,000.00

Ending balance of tools 540,000.00

Inventory method

2020
Ending balance of tools 400,000.00

2021
Ending balance of tools 700,000.00

6
Carrying amount, 12/31/20 1,510,000.00

January 3, 2021
Machinery and equipment 600,000.00
Cash 600,000.00

July 2, 2021
AD 24,000.00
Loss 96,000.00
Machine 120,000.00

CA, 12/31/20 1,510,000.00

machinery 600,000.00 2,320,000.00
AD 24,000.00 1,510,000.00
credit machine (120,000.00) 810,000.00 ad
2,014,000.00 0.35
annual depreciation 309,846.15 10.00
1,704,153.85 3.5 age of asset
3,008,153.85

December 30,2021
Automobile 920,000.00
Cash 920,000.00

AD 324,000.00
Loss 756,000.00
automobile 1,080,000.00

automobile 1,140,000.00
cash 1,140,000.00

Depreciation 390,000.00
AD 390,000.00

7
 1,400,000.00
(20,000.00)
40,000.00
100,000.00
30,000.00
1,550,000.00

list price 1,000,000.00

trade discount (100,000.00)
Invoice price 900,000.00
Cash discount (18,000.00)
882,000.00
PV rate 0.502
50,000.00
25,100.00
Cost of equipment 907,100.00

Equipment
discounted price 570,000.00

Land
FV of land 1,100,000.00

Machinery
Purchase cost 275,000.00
installation 7,000.00
testing cost 18,000.00
construction base 10,000.00
310,000.00

8
1st transaction

Downpayment 0 FV of note 2,000,000

PV of note 1,585,000 PV of note 1,585,000
Cost of asset 1,585,000 DNP 415,000

Payments Interest Principal PV

1,585,000.00
End of year 1 500,000.00 158,500.00 341,500.00 1,243,500.00

2nd transaction
Cost of asset 1,366,000 FV of note 2,000,000
PV of note 1,366,000
DNP 634,000

Interest DNP PV
634,000.00 1,366,000.00
End of year 1 136,600.00 497,400.00 1,502,600.00

3rd transaction
Downpayment 500,000.00 Cost of asset 5,500,000.00
NP 5,000,000.00 Cash price 4,700,000.00
installment price 5,500,000.00 DNP 800,000.00

DNP CURRENT NONCURRENT

End of year 1 5,000,000.00 320,000.00 NP 1,250,000.00 2,500,000.00
End of year 2 3,750,000.00 240,000.00 DNP 240,000.00 240,000.00
End of year 3 2,500,000.00 160,000.00 TOTAL 1,010,000.00 2,260,000.00
End of year 4 1,250,000.00 80,000.00
12,500,000.00 800,000.00

4th transaction
discounted price 2,700,000.00

Total cost of machinery acquired

1st transaction 1,585,000.00
2nd transaction 1,366,000.00
3rd transaction 4,700,000.00
4th transaction 2,700,000.00
10,351,000.00

9
CA of note payable
1st transaction 1,243,500.00
2nd transaction 1,502,600.00
3rd transaction 3,270,000.00
4th transaction 0.00
6,016,100.00

Painting partitions 50,000.00

Major repplacement of monitor 500,000.00
Dust filters 800,000.00
cost to construct 700,000.00
labor cost 430,000.00
OH cost 220,000.00
Interest cost 100,000.00
installation 120,000.00
safety inspection 40,000.00
2,960,000.00

Land Building
2,500,000.00 100,000.00
50,000.00 8,000,000.00
2,550,000.00 8,100,000.00

10
January 1,2019
Ratio Year Revaluation Appreciation
Cost 15,000,000.00 100% 10 24,000,000.00 9,000,000.00
AD 6,000,000.00 40% 4 9,600,000.00 3,600,000.00
CA 9,000,000.00 60% 6 14,400,000.00 5,400,000.00

to solve for annual depreciation after revaluation

Revalued amount 14,400,000.00

Remaining life 6.00
Annual depreciation 2,400,000.00

to solve for piecemeal

RS 5,400,000.00
Remaining life 6.00
Piecemeal 900,000.00

December 31,2021
Ratio Year Revaluation Appreciation
Cost 24,000,000.00 100% 10 10,500,000.00 (13,500,000.00)
AD 16,800,000.00 70% 7 7,350,000.00 (9,450,000.00)
CA 7,200,000.00 30% 3 3,150,000.00 (4,050,000.00)

RS, 1/1/19 5,400,000.00 RS,12/31/21 4,050,000.00

Piecemeal 2,700,000.00 2,700,000.00
RS,12/31/21 2,700,000.00 Revaluation loss 1,350,000.00

Accumulated depreciation 9450000

Revaluation Loss 1,350,000.00
Revaluation Surplus 2,700,000.00
Equipment 13,500,000.00

to solve for depreciation 2022

RA 3,150,000.00
Remaining life 3.00
1,050,000.00

11
January 1,2021

Cost 16,000,000.00
CA 9,600,000.00
AD 6,400,000.00

CA 9,600,000.00 CA 8,000,000.00
DEP 1,600,000.00 Selling price 2,600,000.00
CA 8,000,000.00 Impairment loss 5,400,000.00

Equipment A
Cost 5,000,000.00 CA 2,000,000.00
AD 3,000,000.00 RA 1,250,000.00
CA 2,000,000.00 750,000.00

Equipment B
CA 450,000.00
RA 428,000.00
IL 22,000.00

Equipment C
CA 1,600,000.00
RA 1,400,000.00
IL 200,000.00

Total IL 972,000.00

12
 Aug 31 2021 96.00

COST 14,000,000.00 CA 8,500,000.00

AD 5,500,000.00 RA 7,500,000.00
CA 8,500,000.00 IL 1,000,000.00

CA AFTER IMPAIRMENT ON AUG 31 2021

CA 8,500,000.00
IL 1,000,000.00
CA, AUG 31 2021 7,500,000.00

CA ON DEC 31 2021

CA 7,500,000.00
DE 423,076.00
CA, DEC 31 2021 7,076,924.00

2021
Purchase price 30,000,000.00
RV 0.00
Development costs 6,000,000.00
Restoration cost 2,161,200.00
Depletable amount 38,161,200.00
Estimated reserves 2,000,000.00
Rate 19.08
Extracted 300,000.00
Depletion in 2021 5,724,000.00

2022
Purchase price 30,000,000.00
RV 0.00
Development costs 6,000,000.00
Additional Development costs 1,800,000.00

13
Restoration cost 2,161,200.00
Depletion in 2021 (5,724,000.00)
Depletable amount 34,237,200.00
Estimated reserves 2,400,000.00
Rate 14.27
Extracted 600,000.00
Depletion in 2022 8,562,000.00

to solve for CA of wasting asset

Wasting asset 34,237,200.00

Accum. Depletion 8,562,000.00
CA, 12/31/22 25,675,200.00

14
15
 800,000.00
800,000.00

1,000,000.00
1,000,000.00

800,000.00
16,000.00
784,000.00

1,000,000.00
1,000,000.00

16
17
18
19
20
21
22
 TOTAL
3,750,000.00
480,000.00
3,270,000.00

23
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25
26
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