Question

A B D E F G H 1 2 3 4 5 Brown Company paid cash to purchase the assets of Coffee Company on January 1. 2019. Information is as follows: Total cash paid $3.500.000 Assets acquired: Land S800.000 Building $500,000 Machinery 5900.000 Patents 5500.000 6 7 8 9 10 11 12 13 14 15 16 The building is depreciated using the double-declining balance method. Other information is: Salvage value 550.000 Estimated useful life in years 20 The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 10% Estimated total production output in 200.000 Actual production in units was as 2019 40.000 30.000 2021 120.000 18 19 20 21 22 2020 Required Jnl Entries Copyright F Type here to search O hanya

here is the part thats missing

Answer 1

Date	Account Titles and Explanation	Debit	Credit
1/1/19	Land	$    600,000.00
	Building	$    500,000.00
	Machinery	$    900,000.00
	Patents	$    500,000.00
	Goodwill	$ 1,000,000.00
	Cash		$ 3,500,000.00
	To record purchase of Coffee Company assets.
31/12/2019	Depreciation Expense – Building ( $500,000 x 1/40 yrs x 2) x 1/2	$      12,500.00
	Depreciation Expense – Machinery ( $900,000 x (1 -10%) /200,000 units x 40,000 units	$    162,000.00
	Amortization Expense – Patents (500,000/30 yrs) x 1/2	$        8,333.33
	Accumulated Depreciation – Building		$      12,500.00
	Accumulated Depreciation – Machinery		$    162,000.00
	Patents		$        8,333.33
	To record 2019 depreciation and amortization expense on assets acquired
31/12/2020	Impairment Loss	$    375,000.00
	Patents		$    375,000.00
	To write‐down patents to estimated value at December 31, 2020
	Cost	$    500,000.00
	Less: Amortization (8,333.33 + 500,000/30 yrs)	$      25,000.00
	Carrying Value	$    475,000.00
	Fair value	$    100,000.00
	Impairment Loss	$    375,000.00
12/2/21	Depreciation Expense – Machinery ( $900,000 x (1 -10%) /200,000 units x 20,000 units	$      81,000.00
	Accumulated Depreciation – Machinery		$      81,000.00
	To record depreciation in year of disposal
	Machinery (New)	$    403,200.00
	Accumulated Depreciation – Machinery ( 162,000 + 324,000 +  81000)	$    567,000.00
	Loss on sale of machinery	$    217,800.00
	Machinery Old		$    900,000.00
	Cash		$    288,000.00
12/31/21	Depreciation Expense – Machinery (403,200 - 8,064)/20 x 1/2	9878.4
	Accumulated Depreciation – Machinery		9878.4
8/14/23	Machinery	$    100,000.00
	Cash		$    100,000.00
12/31/23	Depreciation Expense – Machinery (100,000 x (1-10%)/30 yrs x 1/2	$        1,500.00
	Accumulated Depreciation – Machinery		$        1,500.00