Ex. 265
Presented below is information related to plant assets, natural resources, and intangibles at year end on December 31, 2011, for Rangel Company:
Buildings$1,080,000
Goodwill350,000
Patents430,000
Coal Mine440,000
Accumulated Depreciation620,000
Accumulated Depletion275,000
Instructions
Prepare a partial balance sheet for Rangel Company that shows how the above listed items would be presented.
Ex. 266
Compute the asset turnover ratio based on the following:
Beginning total assets$ 800,000
Ending total assets1,200,000
Net income300,000
Net sales2,200,000
Ex. 267
During 2011 Perez Corporation reported net sales of $4,000,000 and net income of $1,500,000. Its balance sheet reported average total assets of $1,600,000.
Instructions
Calculate the asset turnover ratio.
Ex. 268
Indicate in the blank spaces below, the section of the balance sheet where the following items are reported. Use the following code to identify your answer:
PPEProperty, Plant, and Equipment
IIntangibles
OOther
N/ANot on the balance sheet
1.___Goodwill_____ 7.Timberlands
2.___Land Improvements_____ 8.Franchises
3.___Buildings_____ 9.Licenses
4.___Accumulated Depreciation_____ 10.Equipment
5.___Trademarks_____ 11.Oil Deposits
6.___Research and development costs_____ 12.Land
a
Ex. 269
Presented below are two independent situations:
(a)Waner Company exchanged an old machine (cost $100,000 less $60,000 accumulated depreciation) plus $7,000 cash for a new machine. The old machine had a fair market value of $36,000. Prepare the entry to record the exchange of assets by Waner Company.
a
Ex. 269(Cont.)
(b)Fisher Company trades old equipment (cost $90,000 less $54,000 accumulated deprecia-tion) for new equipment. Fisher paid $36,000 cash in the trade. The old equipment that was traded had a fair market value of $54,000. Prepare the entry to record the exchange of assets by Fisher Company. The transaction has commercial substance.