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Equipment purchase of Jan 2 | Accumulated Depreciation | Depreciation Expense | ||||
$ 96,000 | $ 96,000 | |||||
Cost of Equipment: | ||||||
Purchase Cost | $ 140,000 | |||||
Tax | $ 14,000 | |||||
Licence Fee | $ 6,000 | |||||
Total Cost | $ 160,000 | |||||
Rate of Dep 1/5*3 | 60% | |||||
Depreciation for the year $160,000*60% | $ 96,000 | |||||
Depletion of Coal Reserve | ||||||
$ 150,000 | $ 150,000 | |||||
Per ton Depreciation $2,000,000/40,000 Tons | $ 50 | |||||
Depletion for the year 3,000*$50 | $ 150,000 | |||||
Copyright amortization | ||||||
$ 25,000 | $ 25,000 | |||||
Amortization ($120,000/48 Months*10 Months) | $ 25,000 | |||||
Patent Amortization | ||||||
$ 1,600 | $ 1,600 | |||||
$12,000/60 Months*8 Months | $ 1,600 | |||||
Appraized | Ratio | Transaction Price | Allocation | |||
Land | $ 80,000 | 80% | $ 60,000 | $ 48,000 | ||
Patent | $ 20,000 | 20% | $ 60,000 | $ 12,000 | ||
Total | $ 100,000 | $ 60,000 | ||||
Equipment Received | ||||||
$ 7,500 | $ 7,500 | |||||
$180,000/72 Months*3 Months | $ 7,500 |
requirement 2 Plz Problems for Section 8B 8B-1. RASPBERRY Corporation's chart of accounts includes the following...
Problems for Section 8B 8B-1. RASPBERRY Corporation's chart of accounts includes the following categories: Land, Equipment, Patents, Copyrights, and Coal Reserves. RASPBERRY completed the following transactions during the year: Jan 2 Feb 3 Purchased Equipment for $140,000 cash; RASPBERRY also had to pay 10% tax and a $6,000 license fee. Purchased a coal field with 40,000 tons of coal reserves for $2,000,000 cash. Purchased a copyright from another company for $120,000 cash. Purchased a patent and a piece of land...
Problems for Section 8B 8B-1. RASPBERRY Corporation's chart of accounts includes the following categories: Land, Equipment, Patents, Copyrights, and Coal Reserves. RASPBERRY completed the following transactions during the year: Jan 2 Feb 3 March 4 May 5 Purchased Equipment for $140,000 cash; RASPBERRY also had to pay 10% tax and a $6,000 license fee. Purchased a coal field with 40,000 tons of coal reserves for $2,000,000 cash. Purchased a copyright from another company for $120,000 cash. Purchased a patent and...
8B-1. RASPBERRY Corporation's chart of accounts includes the following categories: Land, Equipment, Patents. Copyrights, and Coal Reserves. RASPBERRY completed the following transactions during the year: Jan 2 Feb 3 Purchased Equipment for $140,000 cash; RASPBERRY also had to pay 10% tax and a $6,000 license fee. Purchased a coal field with 40,000 tons of coal reserves for $2,000,000 cash. Purchased a copyright from another company for $120.000 cash. Purchased a patent and a piece of land for a lump sum...
Question 5 Assume Interstellar Communications Ltd.'s balance sheet includes the following assets under Property, Plant, and Equipment: Land, Buildings, and Motor-Carrier Equipment. Interstellar Communications has a separate accumulated depreciation account for each of these assets except land. Further, assume that Interstellar completed the following transactions: Jan 2: Sold motor-carrier equipment with accumulated depreciation of $67,000 (cost of $130,000) for $70,000 cash. Purchased similar new equipment with a cash price of $176,000. • July 3: Sold a building that had cost...
4. Tarrier, Inc., has the following PPE account: Land, Building, and Equipment, with a separate accumulated depreciation account for each of these except land. Tarrier completed the following transactions: (12marks) Traded in equipment with accumulated depreciation of $65,000(cost of$ 139,000) for similar new equipment with a cash cost of $ 179,000. Received a trade-in allowance of $73,000 on the old equipment and paid $106,000 in cash Jan 2 Sold a building that had a cost of $635,000 and had accumulated...
4) Tucker, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Tucker completed the following transactions: Jan 3 Traded in equipment with accumulated depreciation of $61,000 (cost of $131,000) for similar new equipment with a cash cost of $177,000. Received a trade-in allowance of $76,000 on the old equipment and paid $101,000 in cash, Jun 30 Sold a building that had a cost of $640,000 and...
Instructions Chart of Accounts ! Journal Instructions The following transactions, adjusting entries, and closing entries were completed by Legacy Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. 2014 Jan. 4. Nov. 2. Dec. 31. Purchased a used delivery truck for $28,000, paying cash. Paid garage $675 for miscellaneous repairs to the truck. Recorded depreciation on the truck for the year. The estimated useful life of the...
please journalize the each transaction from jan 2 to dec 31st. Question 5 Assume Interstellar Communications Ltd.'s balance sheet includes the following assets under Property Plant, and Equipment: Land, Buildings, and Motor-Carrier Equipment. Interstellar Communications has a separate accumulated depreciation account for each of these assets except land. Further, assume that Interstellar completed the following transactions: . Jan 2: Sold motor-carrier equipment with accumulated depreciation of $67,000 (cost of $130,000) for $70,000 cash. Purchased similar new equipment with a cash...
The intangible assets section of Bramble Corporation's balance sheet at December 31, 2022 is presented here. Patents (579,900 cost less $7.990 amortization) Copyrights ($53,000 cost less $41,500 amortization) Total $73.400 11.500 $84.900 The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan. 2 Pald $36,000 legal costs...
Togo's Sandwich Shop had the following long-term asset balances as of January 1, 2021: Accumulated Cost Depreciation Book Value Land $ 79,000 − $ 79,000 Building 554,000 $ (199,440 ) 354,560 Equipment 143,600 (28,800 ) 114,800 Patent 110,000 (44,000 ) 66,000 Togo's purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a 9-year useful...