Akuntansi Keuangan 1

Depreciation , impairment and

Depletion

ALLEXERCISE
Exercise

11-23
Exercise 11-24
Exercise 11-25
Exercise 11-27
Exercise 11-28
Exercise 11-29

Aggota Kelompok
Revi

Fahlepi
Kemal Pasha Shamsudin
M.Ardi
Yudhatama Bayurindra
Muhammad Zaky
Mohammad Hamka

Exercises 11-23
(a) $850,000 + $170,000 + $40,000* $100,000
12,000,000
= .08 depletion per unit

*Note to instructor: The $40,000 should be depleted because it is an

environmental liability provision.
2,500,000 units extracted X $.08 = $200,000 depletion for 2010
(b) 2,200,000 units sold X $.08 = $176,000 charged to cost of goods
sold for 2010

EXERCISE 11-24 (10-15

minutes)
December 31, 2010
Land........................................................................... 20,000
Unrealized Gain on RevaluationLand............................ 20,000
December 31, 2011
Unrealized Gain on RevaluationLand...................... 20,000
Loss on Impairment ............................................... 20,000
Land ............................................................................... 40,000
December 31, 2012
Land.......................................................................... 25,000
Recovery of Impairment Loss ........................................... 20,000
Unrealized Gain on RevaluationLand.............................. 5,000

EXERCISE 11-25 (10-15

minutes)
Value at deceber
31

acc. Acumulated
other
comprehensive
icome

other
coprehesiv
e
icome

2008

50000

50000

2009

-50000

-40000

2010

2011

10000

10000

15000

2012

60000

50000

Recognized in
net income

25000

EXERCISE 11-27 (10-15 minutes)

(a) January 1, 2009
Equipment ................................................................ 12,000
Cash................................................................................. 12,000
December 31, 2009
Depreciation Expense ............................................. 2,000
Accumulated DepreciationEquipment ..................... 2,000
(b) December 31, 2010
Depreciation Expense ............................................. 2,000
Accumulated DepreciationEquipment ..................... 2,000
Accumulated DepreciationEquipment....................... 4,000
Loss on Impairment ..................................................... 1,000
Equipment (12,000 7,000)..................................... 5,000
(c) Depreciation expense2011: (12,000 5,000) 4 = 1,750

EXERCISE 11-28 (1520 minutes)

(a) Asset turnover ratio:
$10,301
$13,659 + $14,320 = 0.736 times
2
(b) Rate of return on assets:
$676
$13,659 + $14,320 = 4.83%
2

(c) Profit margin on sales:

$676 = 6.56%
$10,301
(d) Profit margin on sales X Asset Turnover Return on Assets
6.56%
X
0.736
= 4.83%

EXERCISE 11-29 (20-25 minutes)

(A)
December 31, 2008
Depreciation Expense................................................... 1,000
Accumulated DepreciationEquipment............................. 1,000
December 31, 2009
Depreciation Expense................................................... 1,000
Accumulated DepreciationEquipment............................. 1,000
Accumulated DepreciationEquipment ................ 2,000
Equipment ($10,000 $8,800)............................................ 1,200
Unrealized Gain on RevaluationEquipment........................ 800

December 31, 2010

Depreciation Expense ($8,800 8).................................... 1,100
Accumulated DepreciationEquipment ......................... 1,100
Accumulated Other Comprehensive Income.......................... 100
Retained Earnings ($1,100 $1,000)................................. 100
December 31, 2011
Depreciation Expense .................................................................. 1,100
Accumulated DepreciationEquipment .................................... 1,100
Accumulated Other Comprehensive Income.................................... 100
Retained Earnings.......................................................................... 100
Accumulated DepreciationEquipment($1,100............................. 2,200
Loss on Impairment ........................................................................ 1,000
Unrealized Gain on Revaluation
($800 $100 $100) ........................................................................ 600
Equipment ($8,800 $5,000....................................................... 3,800