E9-24

Cost 520000
Depletian expense 1.3 ton 1)
Depletian expense 65000

Accounts debit credit

a) Minerals 520000
Cash 520000 2)
c) Depletian expense 65000
Accumulated Depletion 65000

E9-26
Accounts debit credit
Assets 20 mln
Goodwill 1 mln
Liabilities 12mln
Cash 9 mln

E9-27
Net Sales 441000
Dec.31, 2018 Dec.31,2017
Cash 31000 30000
Accounts Receivable 68000 65000
Merchandise Inventory 80000 79000
Preapid Expense 16000 5000
Property, palnt, and equipment 175000 18000
Total 370000 197000

Asset turnover ratio 1.56

 E9A-28
Accounts debit credit
New Equipment 133000
Accumulated Depreciation 68000
Cash 110000
Old Equipment 91000

New Equipment 126000

Accumulated Depreciation 68000
Loss on disposal 7000
Cash 110000
Old Equipment 91000
Date Accounts debit credit
2018 Bond Investment Cost
Jul 1 HTM 100000 Purple 5000
Cash 100000 Yellow 61200
Dec 31 Cash 4500 Black 3680
Interest Revenue 4500 Totals 69880
2019 Understanding
Dec 31 Cash 9000 2) Date Accounts
Interest Revenue 9000 Unrealized Holding loss - Tra
2020 Fair value adjustment
Dec 31 Cash 9000
Interest Revenue 9000 3) Date Accounts
2021 a) Equity Investment - Fin
Dec 31 Cash 9000 Cash
Interest Revenue 9000 b) Cash
2022 Equity Investment - Fin
Dec 31 Cash 9000 c) Equity Investment - Fin
Interest Revenue 9000 Revenue from Investmen
2023 2019 d) Cash
June 30 Cash 4500 Equity Investment - Fin
Interest Revenue Gain on disposal
June 30 Cash 100000
HTM 100000
 Current market value
5500
53000
6230
64730 5150
Understanding
Accounts debit credit
realized Holding loss - Traiding 5150
Fair value adjustment 5150

Accounts debit credit

Equity Investment - Finn 67900
Cash 67900
Cash 22000
Equity Investment - Finn 22000
Equity Investment - Finn 32000
Revenue from Investments 32000
Cash 80100 Equity Investment - Finn
Equity Investment - Finn 77900 67900 22000
Gain on disposal 2200 32000
77900
 Check your Understanding 11-1
Requirement 1
Date Accounts debit credit
Cash 4200
Sales Tax Payable 200
Sales Revenue 4000

Sales Tax Payable 200

Cash 200

Requirement 2
Date Accounts debit credit
2018
Oct 1 Equipment 10000
Notes Payable 10000
Dec 31 Interest Expense 200
Interest Payable 200
2019
Jul 1 Notes Payable 10000
Interest Expense 400
Interest Payable 200
Cash 10600
 P9-30A
1 requirement
Land
Date Land Land Improvements Building Furniture
a 80000
b 6300
c 9000
d 3200
e 9600
f 1000
g 20700
h 9300
i 215000
j 175000
k 9400
l 28500
m 11200
n 10000 40000
o 11200
p 2200
q 6600
Total 98500 75200 461100 13400
2 requirement