Beruflich Dokumente
Kultur Dokumente
5, 2014 Priatna
PROBLEM 1
Early in 2010, Shy Corporation engaged Kone, Inc. to design and
construct a complete modernization of Shys manufacturing facility.
Construction was begun on June 1, 2010 and was completed on
December 31, 2010. Shy made the following payments to Kone, Inc.
during 2010:
Date
June 1, 2010
Payment
$
3,600,00
0
August
31, 5,400,00
2010
0
December 31, 4,500,00
2010
0
In order to help finance the construction, Shy issued the following during
2010:
1. $ 3,000,000 of 10-year, 9% bonds payable, issued at par on May 1,
2010, with interest payable annualy on May 1. Before Shy made
construction payment, this amount was invested with 0.5% return a
month.
2. $ 1,000,000 shares of $7 par, issued at $ 10 per share on October
1, 2010.
In addition, the debt outstanding during 2010 was $ 750,000, 12% note
payable dated January 1, 2006 and due January 1, 2016, with interest
payable annualy on January 1. There was also $ 250,000, 10% note
payable issues on October 1, 2010 and due on October 2012, with
interest payable semianually on October 1 and April 1.
Instructions
Compute the amounts of each of the following:
1. Weighted-average accumulated expenditures qualifying
capitalization of interest cost.
2. Avoidable interest incurred during 2010.
3. Total amount of interest cost to be capitalized during 2010.
4. Prepare all the journal entries.
for
PROBLEM 2
PT Jaya acquired equipment on June 30, 2009, for Rp 500 mio. PT Jaya
elects to value this class of equipment using revaluation accounting. This
equipment is being depreciated on a double-declining method over its 4-
4:
Exchanges
of
Non-Monetary
Assets
(E10-18
Trade-in allowance
Cost of old melter (5-year life, $700
residual value)
Accumulated depreciation old melter
(straight line)
Fair value of old melter
$
15,80
0
6,000
12,70
0
8,200
5,200
Instructions
Prepare the journal entry (ies) necessary to record this exchange,
assuming that the exchnage
(a) has a commercial substance
(b)lacks commercial substance
Montgomerys year ends on December 31, and depreciation has been
recorded through December 31, 2010.