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TCO 6) BagODonuts Company bought a used delivery truck on January 1, 2010, for $19,200. The van was expected to remain in service 4 years (30,000 miles). BagODonuts? accountant estimated that the truck?s residual value would be $2,400 at the end of its useful life. The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year.;1. Calculate depreciation expense for the truck for each year (2010-2013) using the;a. Straight-line method.;b. Double-declining balance method.;c. Units of Production method.;(For units-of-production and double-declining balance, round to the nearest two decimals after each step of the calculation.);2. Which method best tracks the wear and tear on the van?;3. Which method would BagODonuts prefer to use for income tax purposes? Explain in detail why BagODonuts prefers this method. (Points: 25);Below are the accounts of Super Pool Service, Inc. The accounts have normal balances on June 30, 2012. The accounts are listed in no particular order.;Account Balance;Common stock $5,100;Accounts payable $4,400;Service revenue $17,100;Land $28,800;Note payable $9,500;Cash $5,200;Dividends $6,100;Utilities expense $2,100;Accounts receivable $10,600;Delivery expense $700;Retained earnings $25,600;Salary expense $8,200;Prepare the company?s trial balance as of June 30, 2012, listing accounts in proper sequence, as illustrated in the chapter. For example, Accounts Receivable comes before Land. List the expense with the largest balance first, the expense with the next largest balance second, and so on.;(TCO4) Linda?s Lampshades started business on Jan. 1, 2001. They had the following inventory transactions;Journals - Jan. 2001;Purchases;Supplier Date Received Quantity Unit Cost Amount;Donna 01/10/01 110 12.00 1320.00;Thomas 01/15/01 160 14.00 2240.00;Cindy 01/18/01 150 15.00 2250.00;Sales;Customer Date shipped Quantity Sel. Price Amount;Norilene 01/16/01 200 25.00 5000.00;1. Calculate the ending inventory, using the perpetual inventory method;A. Using FIFO;B. Using LIFO;C. Using Average Cost;2. Prepare the following statement;Using;FIFO LIFO Average Cost;Sales;Cost of Sales;Gross Profit;(Points: 25);Internal Control Procedures are in place to protect the assets of every business as mentioned in the textbook and our discussions. Of the seven internal control procedures, list five of these controls and describe how each procedure is implemented. (5 points each with 2 points for listing and 3 points for a description) (Points: 25)


Paper#81756 | Written in 18-Jul-2015

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