Prepare the journal entry for St Jude’s sales of PP&E. (Assume all proceeds from sales of investments are related to the sale of PP&E) PP&E
Beg Bal (pg 32) $2,454
Purchases (pg 34) $280 $93 Sold (plug) $12 Impairment (Pg 50)
Ending Bal (pg 32) $2,629 Accum Depr $1,066 Beg Bal (pg 32) $196 Depr Exp (pg 36)
Sales (plug) $58 $1,204 Ending Bal (pg 32)

Cash (pg 34 – proceeds) $19
Accum Depreciation $58
Loss on Sale of PP&E $16 PP&E $93
Prepare St Jude’s year-end 2012 adjusting entry for Depreciation Expense.
Depreciation Expense $196 Accum Depreciation $196
What caused the fluctuation in St Jude’s goodwill in 2012?
Foreign Currency Translation (Pg 41)
Prepare St Jude’s adjusting entry for Amortization Expense that would have been prepared on 29-Dec-2012.
Amortization Expense $88 Accum Amortization $88
St Jude’s indefinite-lived assets decreased in value. What was the amount? What was the reason for the decrease?
$11M which was due to a reclassification of a technology to a definite-lived intangible asset.
Prepare St Jude’s journal entry for new warranty liability in 2012.
Warranty Expense $5 Warranty Liability $5
Prepare St Jude’s journal entry for warranty services provided to customers.
Warranty Liability $3 Cash/Credit to Customer $3
How much BEFORE TAX unrealized gain did St Jude’s have for available-for-sale investments in 2012?
Page 31 - $11M, Statement of Comprehensive Income says $10M net of taxes and that the taxes were $1M for 2012 ($10M + $1M = $11M)
How much gain did they realize from their available-for-sale investments in 2012?
$8M net of taxes, $6M in taxes, total gain was $14M

Prepare the journal entry for St Jude’s sales of PP&E. (Assume all proceeds from sales of investments are related to the sale of PP&E) PP&E
Beg Bal (pg 32) $2,454
Purchases (pg 34) $280 $93 Sold (plug) $12 Impairment (Pg 50)
Ending Bal (pg 32) $2,629 Accum Depr $1,066 Beg Bal (pg 32) $196 Depr Exp (pg 36)
Sales (plug) $58 $1,204 Ending Bal (pg 32)

Cash (pg 34 – proceeds) $19
Accum Depreciation $58
Loss on Sale of PP&E $16 PP&E $93
Prepare St Jude’s year-end 2012 adjusting entry for Depreciation Expense.
Depreciation Expense $196 Accum Depreciation $196
What caused the fluctuation in St Jude’s goodwill in 2012?
Foreign Currency Translation (Pg 41)
Prepare St Jude’s adjusting entry for Amortization Expense that would have been prepared on 29-Dec-2012.
Amortization Expense $88 Accum Amortization $88
St Jude’s indefinite-lived assets decreased in value. What was the amount? What was the reason for the decrease?
$11M which was due to a reclassification of a technology to a definite-lived intangible asset.
Prepare St Jude’s journal entry for new warranty liability in 2012.
Warranty Expense $5 Warranty Liability $5
Prepare St Jude’s journal entry for warranty services provided to customers.
Warranty Liability $3 Cash/Credit to Customer $3
How much BEFORE TAX unrealized gain did St Jude’s have for available-for-sale investments in 2012?
Page 31 - $11M, Statement of Comprehensive Income says $10M net of taxes and that the taxes were $1M for 2012 ($10M + $1M = $11M)
How much gain did they realize from their available-for-sale investments in 2012?
$8M net of taxes, $6M in taxes, total gain was $14M

Prepare the journal entry for St Jude’s sales of PP&E. (Assume all proceeds from sales of investments are related to the sale of PP&E) PP&E
Beg Bal (pg 32) $2,454
Purchases (pg 34) $280 $93 Sold (plug) $12 Impairment (Pg 50)
Ending Bal (pg 32) $2,629 Accum Depr $1,066 Beg Bal (pg 32) $196 Depr Exp (pg 36)
Sales (plug) $58 $1,204 Ending Bal (pg 32)

Cash (pg 34 – proceeds) $19
Accum Depreciation $58
Loss on Sale of PP&E $16