ACCTG211 – Summer I 2016 (Section 101)

ACCTG211 – Summer I 2016 (Section 101)Assignment #2Due: Monday, June 6, 2016Please submit a stapled hard copy at the beginning of class.Clearly put your name on the top of your assignment.The following information is used in questions 1 – 3.The Flavored Water Company bought a new piece of equipment at the beginning of the year for$15,400, that bottles the water. The estimated useful life of the machine is 5 years, and its estimatedproductivity is 75,000 bottles of water. Its salvage value is estimated to be $400. Yearly productionwas:Year 1: 15,000 bottlesYear 2: 18,750 bottlesYear 3: 11,250 bottlesYear 4: 22,500 bottlesYear 5: 7,500 bottlesQuestion 1: Complete a depreciation schedule using the straight-line method.Question 2: Complete a depreciation schedule using the activity-based method.Question 3: Complete a depreciation schedule using the double-declining balance method.Hint: A depreciation schedule looks like what we did in class:YEARBeg. BV($)RateAnnual Dep. Exp.($)Acc. Dep. ($) End. BV($)The following information is used in questions 4 – 5.The following transactions relate to the equity accounts of The Seafood Company during 2015:1) Contributed capital on January 1, 2015, consisted of 70,000 issued and outstanding shares ofcommon stock with par value of $0.50, additional paid-in capital in excess of par of$350,000, and retained earnings of $500,000.2) During the first quarter of 2015, The Seafood Company issued an additional 10,000 shares ofcommon stock for $6 per share.3) On June 15, the company declared a 2-for-1 stock split.4) On September 30, the company distributed a 10% stock dividend. The market price of thestock on that date was $5 per share.5) On October 1, the company declared a dividend of $0.25 per share to be paid on October 31.6) Near the end of the year, the company’s CEO decided the company should buy 1,000 sharesof its own stock. At that time, the stock was trading for $6 per share in the stock market.7) Net income for 2015 was $49,500.Question 4: Show how each of these transactions would affect the accounting equation.Question 5: Prepare the shareholders’ equity section of the balance sheet at December 31, 2015.Hint: You can use the following template for your shareholders’ equity section:Common stockAdditional paid-in capitalRetained earningsLess: treasury stockTotal shareholders’ equity______________________________________________________________________