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 ago
Next > < Previous

Related Solutions

ARDUOUS COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions) 2016 2015   Assets...
ARDUOUS COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions) 2016 2015   Assets   Cash $ 116    $ 81      Accounts receivable 190    194      Investment revenue receivable 6    4      Inventory 205    200      Prepaid insurance 4    8      Long-term investment 156    125      Land 196    150      Buildings and equipment 412    400          Less: Accumulated depreciation (97) (120)   Patent 30    32    $ 1,218    $ 1,074...
Tan Inc. operates with a December 31 year-end. During 2016, the following transactions occurred: 1.) January...
Tan Inc. operates with a December 31 year-end. During 2016, the following transactions occurred: 1.) January 1: Received a two-year, 5% loan for $80,000. Interest and principal are to be paid at maturity. 2.) February 1: Was approved for a line of credit of $50,000 with the bank. Interest of 7% will be charged on borrowed funds with appropriate interest paid as borrowings are repaid. Tan borrowed $10,000 on the line of credit. 3.) June 1: Repaid $5,000 on the...
On December 31, 2015, Valur Co. had the following available-for-sale investment disclosure within the Current Assets...
On December 31, 2015, Valur Co. had the following available-for-sale investment disclosure within the Current Assets section of the balance sheet: 1 Available-for-sale investments (at cost) $145,000.00 2 Plus valuation allowance for available-for-sale investments 40,000.00 3 Available-for-sale investments (at fair value) $185,000.00 There were no purchases or sales of available-for-sale investments during 2016. On December 31, 2016, the fair value of the available-for-sale investment portfolio was $200,000. The net income of Valur Co. was $210,000 for 2016. Compute the comprehensive...
Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2016 2015 Cash and...
Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2016 2015 Cash and cash equivalents $21,000 $20,000 Short-term investments 3,759 3,240 Accounts Receivable 52,500 48,000 Inventories 84,000 56,000 Total current assets $161,259 $127,240 Net fixed assets 218,400 200,000 Total assets $379,659 $327,240 Liabilities and equity Accounts payable $33,600 $32,000 Accruals 12,600 12,000 Notes payable 19,929 6,480 Total current liabilities $66,129 $50,480 Long-term debt 67,662 58,320 Total liabilities $133,791 $108,800 Common stock 183,793 178,440 Retained Earnings 62,075 40,000...
Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2016 2015 Cash and...
Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2016 2015 Cash and cash equivalents $21,000 $20,000 Short-term investments 3,759 3,240 Accounts Receivable 52,500 48,000 Inventories 84,000 56,000   Total current assets $161,259 $127,240   Net fixed assets 218,400 200,000 Total assets $379,659 $327,240 Liabilities and equity Accounts payable $33,600 $32,000 Accruals 12,600 12,000 Notes payable 19,929 6,480   Total current liabilities $66,129 $50,480 Long-term debt 67,662 58,320   Total liabilities $133,791 $108,800 Common stock 183,793 178,440 Retained Earnings 62,075 40,000...
Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2016 2015 Cash and...
Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2016 2015 Cash and cash equivalents $21,000 $20,000 Short-term investments 3,759 3,240 Accounts Receivable 52,500 48,000 Inventories 84,000 56,000   Total current assets $161,259 $127,240   Net fixed assets 218,400 200,000 Total assets $379,659 $327,240 Liabilities and equity Accounts payable $33,600 $32,000 Accruals 12,600 12,000 Notes payable 19,929 6,480   Total current liabilities $66,129 $50,480 Long-term debt 67,662 58,320   Total liabilities $133,791 $108,800 Common stock 183,793 178,440 Retained Earnings 62,075 40,000...
Carolina Products Balance Sheet 12/31/2016 & 12/31/2015 Horizontal Analysis Assets 2016 2015 $ Change % Change...
Carolina Products Balance Sheet 12/31/2016 & 12/31/2015 Horizontal Analysis Assets 2016 2015 $ Change % Change Cash $108,886 $107,455 Accounts Receivable $105,650 $112,420 Prepaid Insurance $1,100 $1,000 Inventory $205,000 $189,350 Prepaid Expenses $1,200 $1,050 Land $80,000 $80,000 Office Equipment $10,500 $10,500 Accum Depr-Office Equip ($2,000) ($2,200) Total Assets $510,336 $501,590 Liabilities Accounts Payable $72,090 $70,005 Sales Tax Payable $3,500 $3,450 Interest Payable $860 $825 Total Liabilities $76,450 $74,280 Stockholders Equity Common Stock $60,000 $58,000 Paid in Capital in Excess of...
CONSOLIDATED BALANCE SHEET (millions of dollars) 2016 2015 Assets 2016 2015 Current assets 2016 2015 Cash...
CONSOLIDATED BALANCE SHEET (millions of dollars) 2016 2015 Assets 2016 2015 Current assets 2016 2015 Cash and cash equivalents 3,657 3,705 Notes and accounts receivable 21,394 19,875 Inventories: Crude oil, products and merchandise 10,877 12,037 Materials and supplies 4,203 4,208 Other current assets 1,285 2,798      Total current assets 41,416 42,623 Crude oil, products and merchandise inventories are carried at the lower of current market value or cost (generally determined under the last-in, first-out method – LIFO). Inventory costs include...
The following transactions involving intangible assets of Francis Corporation occurred on or near December 31, 2020....
The following transactions involving intangible assets of Francis Corporation occurred on or near December 31, 2020. Prepare the journal entry(ies) needed at that date to record the transaction, and at December 31, 2021 to record any resultant amortization. If no entry is required at a particular date, write "None needed." 1) Francis paid Jericho Company $ 200,000 for the exclusive right to market a particular product, using the Jericho name and logo in promotional material. The franchise runs for as...
Kat's Cat Klinic had the following balance sheet as of December 31, 2015: Assets:                            &nbsp
Kat's Cat Klinic had the following balance sheet as of December 31, 2015: Assets:                                                                 Liabilities and Stockholders’ Equity Cash                                        $    195,000     Accounts Payable                   $      23,000 Accounts Receivable $70,000                        Salaries Payable                             11,400 Less Allowance           (4,500)       65,500     Utilities Payable                                2,100 Prepaid Insurance                          31,000     Interest Payable                                3,800 Supplies                                          29,000     Unearned Revenue                        13,500     Building                    $510,000                        Notes Payable                                57,000 Accum Depr – Build (185,000)     325,000     Common Stock                             225,000 Equipment                $385,000                      ...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT