Chapter 7, CASE 7.

Question 1:

Cash…………………………………………………………………………………3866
Accumulated depreciation, Factory Machinery……………..27,367
Factory Machinery………………………………………………………..31233

Tools used (Expense)………………………………………………………....7850

Tools………………………………………………………………………………7850

Depreciation expense…………………………………………………………...278
Accumulated Depreciation, Automotive equipment…..…….278
(0.166*0.2*8354)
Cash…………………………………………………………………………………….2336
Accumulated Depreciation, Automotive equipment……………5458
Loss on sale of other assets…………………………………………………..560
Automotive equipment……………………………………………………8354

Patent expense…………………………………………………………………11,250
Patent…………………………………………………………………………….11,250

Cash………………………………………………………………………………………..75
Accumulated depreciation, Office machines……………………….1027
Gain on sale of other assets…………………………………………………..75
Office machines……………………………………………………………….1027

Depreciation expense………………………………………………………….…37
Accumulated Depreciation……………………………………………………37
(0.75*0.10*490)
Cash……………………………………………………………………………………….80
Accumulated Depreciation, Furniture and Fixtures……………….432
Furniture and Fixtures………………………………………………………..490
Gain on sale of other assets………………………………………………….22

Depreciation…………….…………………………………………………3,98,779
Accumulated Depreciation, Building………………………………48105
Accumulated Depreciation, Factory Machinery………….3,30,935
Accumulated Depreciation, Fixtures & Furnitures……………5,599
Accumulated Depreciation, Automotive Equipment………..9,989
Accumulated Depreciation, Office Machines……………………4,151
Question 2:

Item Gross Value Accumulated Net Value

Depreciation
Land 1,86,563 - 1,86,563
Building 24,05,259 7,11,484 16,93,775
Factory Machinery 33,94,352 19,45,926 14,48,426
Furniture and Fixtures 55,994 45,604 10,390
Automotive Equipment 49,944 41,965 7,979
Office Machines 41,507 31,129 10,378
Tools 53,444 - 53,444
Patent 45,000 - 45,000
Total 62,32,063 27,76,108 34,55,955