ACC 291 Week 2 Wiley Questions Latest 2016 Version

Question  1

Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2014 (in millions): other plant assets $983.5; land $243.3; patents and trademarks (at cost) $547.4; machinery and equipment $2,012.3; buildings $943; goodwill (at cost) $188.9; accumulated amortization $54.1; and accumulated depreciation $2,397.

Prepare a partial balance sheet for Nike for these items. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

Question 2

Match the statement with the term most directly associated with it.

Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance

The allocation of the cost of an intangible asset to expense in a rational and systematic manner.

A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area.

Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred.

The excess of the cost of a company over the fair value of the net assets acquired.

Question 3

Wang Co. has delivery equipment that cost $47,610 and has been depreciated $23,640.

Record entries for the disposal under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a)

It was scrapped as having no value.

(b)

It was sold for $36,860.

(c)

It was sold for $19,880.

Question 4

Here are selected 2014 transactions of Cleland Corporation.

Jan. 1

Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $62,360 and had a useful life of 10 years with no salvage value.

June 30

Sold a computer that was purchased on January 1, 2012. The computer cost $35,600 and had a useful life of 4 years with no salvage value. The computer was sold for $4,910 cash.

Dec. 31

Sold a delivery truck for $9,290 cash. The truck cost $24,190 when it was purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $4,090 salvage value.

Question 5

The financial statements of Tootsie Roll are presented below.

TOOTSIE ROLL INDUSTRIES, INC

Question 6

The financial statements of The Hershey Company and Tootsie Roll are presented below.

Question 7

At December 31, 2014, Navaro Corporation reported the following plant assets.

Land

$ 4,122,000

Buildings

$36,260,000

Less: Accumulated depreciation—buildings

16,384,950

19,875,050

Equipment

54,960,000

Less: Accumulated depreciation—equipment

6,870,000

48,090,000

Total plant assets

$72,087,050

Question 8

Presented below is an aging schedule for Bosworth Company.

Customer

Total

Not Yet Due

Number of Days Past Due

1–30

31–60

61–90

Over 90

Aneesh

$ 29,000

$ 10,000

$19,000

Bird

42,100

$ 42,100

Cope

52,100

6,700

7,500

$37,900

DeSpears

48,500

$48,500

Others

134,600

93,100

31,300

10,200

$306,300

$141,900

$48,800

$29,200

$37,900

$48,500

Estimated percentage uncollectible

5%

7%

10%

30%

66%

Total estimated bad debts

$ 56,811

$ 7,095

$3,416

$2,920

$ 11,370

$32,010