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Sunday, November 14, 2010

Valix Finacc vol 1 Problem 17-15

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 17 Problem 17-15



Retirement method

March         1   Electric meters                                                 250,000
                                    Cash                                                                                        250,000

                   1   Cash                                                                              20,000
                        Depreciation                                                               160,000
                                    Electric meters                                                             180,000

July              1   Electric meters                                                            400,000
                                    Cash                                                                                        400,000                                                                                                                        
December 1   Electric meters                                                  200,000
                                    Cash                                                                                        200,000

                  1   Cash                                                                               15,000
                       Depreciation                                                                135,000
                                    Electric meters                                                             150,000
Replacement method

March       1   Depreciation (250,000 – 20,000)                         230,000
                                    Cash                                                                                        230,000

July            1   Electric meters                                                              400,000
                                    Cash                                                                                        400,000

December 1   Depreciation (200,000 – 15,000)                                    185,000
                                    Cash                                                                                        185,000

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