Question

For each of the following transactions or adjustments indicate the effect of the transaction or adjustment on assets, beties, and net income by entering for each account affected the account name and amount and indicating whether it is an addition of a Subcon Transaction has been done as an illustration Net income is not affected by every transaction. In some cases, only one Column may be afected because all of the specific accounts afected by the transaction are included in that category. a. Recorded 5200 of depreciation de se b. Sold and that had o n ly cost $9.000 for $13 000 in cas c. Acquired a new machine under a financing lease The present value of Nitre base payments, discounted at 9 was 1.000 d. Recorded the testa ment of $2100 for the loved machine patch e. Recorded a $6.000 payment for the cost of developing and registering a trademark Recognized periode amortization for the trademark in te using a 34 yearustule 9. So d ruction woment for $6.000 in the mentong cost $50.000, and the accurated depreciation account has an adjusted balance of $23.00 was determined at a suo year-todate depreciation entry must be recorded before the sale transaction can be recorded Record the acustent and the

Answer 1

4.

Transaction	Assets	Liabilities	Net Income
a.	Accumulated Depreciation : - 200		Depreciation Expense: - 200
b.	Cash: + 13,000 Land: - 9,000	-	Gain on Sale of Land: + 4,000
c.	Right-of-use Asset: + 11,000	Lease Liability : + 11,000	-
d.	Cash : - 2,400	Lease Liability : - 1,410	Interest Expense: - 990
e.	Cash: - 6,000 Trademark : + 6,000	-	-
f.	Trademark : - 176	-	Amortization Expense: - 176
g.	Cash : + 16,000 Equipment: - 50,000 Accumulated Depreciation : + 24,900	-	Depreciation Expense: - 1,100 Loss on Sale of Equipment:: - 9,100

5.

Transactions	Assets	Liabilities	Net Income
a.	Accumulated Depreciation : - 200	-	Depreciation Expense: - 200
b.	Cash: + 10,700 Land: - 14,400	-	Loss on Sale of Land: - 3,700
c.	Patent: + 69,800 Cash: - 69,800	-	-
d.	Patent: - 3,490	-	Amortization Expense: - 3,490
e.	Cash : - 3,400 Production Equipment : + 3,400	-	-
f.	Cash : - 1,400	-	Maintenance Expense: - 1,400
g.	Cash : + 7,700 Machine: - 28,000 Accumulated Depreciation : +17,920		Loss on Sale of Machine : - 2,380
h.	Cash: - 324,000 Land : + 37,100 Buildings: + 194,000 Equipment : + 96,000 Goodwill : + 64,900	Long Term Debt; + 68,000	-