# ACC 281 Week 3 Team Assignment P9-2A,P10-3A,P10-5A,P10-7A

## ACC 281 Week 3 Team Assignment P9-2A,P10-3A,P10-5A,P10-7A

ACC 281 Week 3 Team Assignment P9-2A,P10-3A,P10-5A,P10-7A

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PROBLEM 9-2A

(a) \$33,000.

(b) \$44,000 (\$2,200,000 X 2%).

(c) \$46,500 [(\$825,000 X 6%) – \$3,000].

(d) \$52,500 [(\$825,000 X 6%) + \$3,000].

(e) The weakness of the direct write-off method is two-fold. First, it does not match expenses with revenues. Second, the accounts receivable are not stated at cash realizable value at the balance sheet date.

PROBLEM 10-3A

(a) (1) Purchase price………………………………………………………….. \$ 38,000
1,700  Sales tax…………………………………………………………………….
150   Shipping costs…………………………………………………………..
80     Insurance during shipping………………………………………..
Installation and testing……………………………………………… 70
Total cost of machinery……………………………………… \$ 40,000

Machinery…………………………………………………….. 40,000
Cash……………………………………………………… 40,000

(2) Recorded cost…………………………………………………………… \$ 40,000
Less: Salvage value…………………………………………………. 5,000
Depreciable cost……………………………………………………….. \$ 35,000
Years of useful life…………………………………………………….. ÷ 5
Annual depreciation…………………………………………… 7,000 \$

7,000 Depreciation Expense………………………………….
7,000 Accumulated Depreciation……………………

ACC 281 Week 3 Team Assignment P9-2A,P10-3A,P10-5A,P10-7A