Student Name:
Class:
Debit Credit
Requirement 2:
2016 2015
Income tax expense
Net income
Earnings per common share
Earnings per share:
525,000$ 399,000$
Problem 20-01
McGraw-Hill/Irwin
Instructor
Requirement 1:
CECIL-BOOKER VENDING COMPANY
Comparative Income Statements
CECIL-BOOKER VENDING COMPANY
General Journal
Account
Income before taxes
Retained earnings
To record the change:
Income tax payable
120,000$
Given P20-01:
CECIL-BOOKER VENDING COMPANY
Inventories (average cost basis), 12/31/14
Income from continuing operations, 2016
Inventories (FIFO basis), 12/31/15
Inventories (FIFO basis), 12/31/14
Tax rate
Common shares outstanding each year
Income from continuing operations, 2015
Student Name:
Class:
1,600,000$
Ore extracted (tons)
Estimated ore extracted (tons)
Depletion per ton
2016
100,000$
Revised ore extraction (tons)
Revised depletion rate
Structures:
Building cost
Depreciation per ton
Depreciation:
Revised depreciation rate
80,000
Depreciation per ton
Revised depreciation rate
80,000$
Instructor
Depletion and Depreciation
MARION COMPANY
Problem 20-07
McGraw-Hill/Irwin
Requirement 1:
Cost of mineral mine:
Depletion:
2014
Ore extracted (tons)
Land resale value
Purchase price
Equipment:
Equipment cost
Development costs
2,200,000$
Correct!
80,000$
Book Value
MARION COMPANY
Cost
Less accumulated depletion:
Requirement 2:
Mineral mine:
Cost
Less accumulated depreciation:
Equipment:
Cost
Less accumulated depreciation:
Structures:
1,600,000$
600,000$
Given Data P20-07:
MARION COMPANY
Estimated tons extracted
Revised estimated tons extracted
2014 ore extracted
Land resale value
Building costs
Useful life of buildings
New equipments cost
Auction price of equipment
2016 ore extracted and sold
Student Name:
Class:
Debit Credit
10
10 «- Correct!
Instructor
($ in millions)
General Journal
WHALEY DISTRIBUTORS
Problem 20-14
McGraw-Hill/Irwin
Requirement 1:
Account
b.
Inventory
Retained earnings
a.
c.
2016 adjusting entry:
d.
2016 adjusting entry:
Patent amortization expense
Patent
No entry to record the change
*Cumulative effect of the change:
Liability – litigation
Gain – litigation
Cash
Retained earnings
Patent
Depreciation expense
Accumulated depreciation
Cost
Previous depreciation (calculated below)
Calculation of annual depreciation after the change:
Undepreciated cost
Estimated residual value
To be depreciated
Estimated remaining life
New annual depreciation
Shareholders‘ Net
Assets Liabilities Equity Income Expenses
Correct! Correct! Correct! Correct! Correct!
820$ 400$ 420$ 230$ 175$
12 (12)
Financial Statements
WHALEY DISTRIBUTORS
2014 inventory
Requirement 2:
2015
740$ 330$ 410$ 210$ 150$
2014
Shareholders’ Net
Assets Liabilities Equity Income Expenses
2014 740$ 330$ 410$ 210$ 150$
Given Data P20-14:
WHALEY DISTRIBUTORS
(in millions)
December 31
Financial Statements