Question
In: Accounting
Net Investment in Capital Assets was $1,200,000 on December 31, 2015. During 2016, the following occurred:...
Net Investment in Capital Assets was $1,200,000 on December 31, 2015. During
2016, the following occurred:
? Issued $1,000,000 bonds for construction of Capital Assets
? Materials, labor, and overhead of $900,000 went into Construction
In
Progress. Transferred $850,000 of Construction in Progress to
Capital Assets.
? Paid $100,000 principal and $60,000 interest on the bonds.
? Recorded depreciation expense of $125,000
What amount was Net Investment in Capital Assets at December 31,
2016?
A. $1,025,000 B. $1,075,000 C. $1,135,000 D. $1,925,000
Solutions
Expert Solution
Answer
D. $1,925,000
Solution:
Net Investment in Capital Assets
|
Beginning Balance |
$1,200,000 |
|
Additions in capital assets (Transferred Construction in Progress to Capital Assets.) |
$850,000 |
|
Less: Depreciation expense |
$125,000 |
|
Ending Net Investment in Capital Assets at December 31, 2016 |
$1,925,000 |
ekkarill92 answered 1 year agoRelated Solutions
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Accounts Receivable
52,500
48,000
Inventories
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Accruals
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Notes payable
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2016
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Accounts Receivable
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Inventories
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56,000
Total current assets
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Net fixed assets
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200,000
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Liabilities and equity
Accounts payable
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Notes payable
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Accounts Receivable
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Inventories
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