Question

Chp 7

Blackford and Medford Publishing Company own the copyrights on many top authors. On January 5, 2020, Blackford and Medford acquired the copyright on the literary works of Susan Monroe, an underground novelist in the 1960s, for $825,000 cash. Due to a recent resurgence of interest in the 1960s, the copyright has an estimated economic life of 5 years. The residual value is estimated to be zero.

	Required:
1.	Prepare a journal entry to record the acquisition of the copyright.
2.	Compute and record the 2020 amortization expense for the copyright. Compute the 2020 amortization expense for the copyright. Amortization Expense 6) Oxford Quarries purchased 45 acres of land for $185,000. The land contained stone that Oxford will remove from the ground, finish, and then sell as facing material for buildings. Oxford spent $435,000 preparing the quarry for operation. Oxford estimates that the quarry contains 55,000 tons of usable stone and that it will require 6 years to remove all the usable stone once quarrying begins. Upon completion of quarrying, Oxford estimates that the land will have a residual value of $11,150. During 2019, Oxford extracted 8,500 tons of stone. Required: 1. Compute the depletion rate per ton. 2. Prepare the journal entry to record the extraction of the stone. none X Chart of Accounts CHART OF ACCOUNTS Oxford Quarries General Ledger ASSETS 111 Cash 121 Accounts Receivable 122 Notes Receivable 123 Supplies 124 Prepaid Insurance 125 Prepaid Rent 126 Inventory 127 Interest Receivable 130 Investment 131 Land 132 Buildings 133 Equipment 134 Furniture 135 Trucks 139 Accumulated Depreciation 141 Patent 142 Copyright 143 Trademark 144 Franchise 145 Goodwill 151 Natural Resources 159 Accumulated Depletion LIABILITIES 211 Accounts Payable 212 Notes Payable 213 Income Taxes Payable 214 Wages Payable 215 Utilities Payable 216 Insurance Payable 217 Rent Payable 221 Interest Payable 222 Unearned Service Revenue 223 Unearned Rent Revenue 231 Bonds Payable EQUITY 311 Common Stock 321 Retained Earnings 331 Dividends REVENUE 411 Sales Revenue 412 Service Revenue 413 Interest Income 414 Rent Revenue 431 Gain on Disposal of Property, Plant, and Equipment EXPENSES 511 Cost of Goods Sold 512 Advertising Expense 513 Supplies Expense 514 Utilities Expense 515 Rent Expense 516 Insurance Expense 521 Wages Expense 531 Interest Expense 532 Depreciation Expense 541 Income Taxes Expense 559 Miscellaneous Expense 561 Loss on Disposal of Property, Plant, and Equipment 562 Loss from Impairment none X First Question b. Compute the depletion rate per ton. Additional Instructions Round your answer to two decimal place. per ton Points: Feedback Check My Work Explanation none X General Journal c. Prepare the journal entry to record the extraction of the stone on December 31. d)Compute the depletion rate per to

Answer 1

	BLACKFORD AND MEDFORD PUBLISHING COMPANY:
1)	Copyrights	$    8,25,000
	Cash		$   8,25,000
	[To record acquisition of copyright]
2)	Amortization expense-Copyrights	$    1,65,000
	Accumulated amortization expense-Copyrights		$   1,65,000
	[To record amortization expense]
	OXFORD QUARRIES:
1)	Depletion rate = 435000/55000 =	$             7.91	per ton
2)	Depletion expense-Natural resources	$        67,235
	Accumulated depletion-Natural resources		$       67,235
	[To record depletion expense]