A On July 1, 2020 ABC Co. purchaseda patent for $2,400,000. The patent legally protects the owner for 20 years and the company plans to use it for 30 years.Beguired: Prepare the journal entry to record the amortization expense on Dec. 31, 2020B. On January 1, 2017, Sar Co. purchased oquipment costing $312,000. The equipment has been depreciated using the straight-line method based on estimated salvage value of $24,000 and an entimatedusieful lhfe of 6 years. On Aprıl 1, 2020, the company sold the equipment for $ 140,000 cash.Required Prepare journal entries to record:1. The partial year's depreciation (the update) on April 1, 2020.2 The sale of the equipment on April 1, 2020.YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE"" BETWEEN NUMBERS:Dr. Cash 10000C Land 10000For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).I....B.ParagraphArial14px

Name: A On July 1, 2020 ABC Co. purchaseda patent for $2,400,000. The paten
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Description: A On July 1, 2020 ABC Co. purchaseda patent for $2,400,000. The patent legally protects the owner for 20 years and the company plans to use it for 30 years.Beguired: Prepare the journal entry to record the amortization expense on Dec. 31, 2020B. On

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A. On July 1, 2020 ABC Co. purchased a patent for $ 2,400,000. The patent legally protects the owner for 20 years and the company plans to use it for 30 years Beguired: Prepare the journal entry to record the amortization expense on Dec. 31, 2020 B. On January 1, 2017, Sar Co. purchased equipment costing $312,000. The equipment has been depreciated using the straight-line method based on estimated salvage value of $24A000 and an entimated usieful hfe of 6 years. On April 1, 2020, the company sold the equipment for $ 140,000 cash. Required Prepare journal entries to record: 1. The partial year's depreciation (the update) on April 1, 2020. 2 The sale of the equipment on April 1, 2020. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM, DO NOT USE "" BETWEEN NUMBERS: Dr. Cash 10000 C Land 10000 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). T. X O B Q

A. On July 1, 2020 ABC Co. purchased a patent for $ 2,400,000. The patent legally protects the owner for 20 years and the company plans to use it for 30 years Beguired: Prepare the journal entry to record the amortization expense on Dec. 31, 2020 B. On January 1, 2017, Sar Co. purchased equipment costing $312,000. The equipment has been depreciated using the straight-line method based on estimated salvage value of $24A000 and an entimated usieful hfe of 6 years. On April 1, 2020, the company sold the equipment for $ 140,000 cash. Required Prepare journal entries to record: 1. The partial year's depreciation (the update) on April 1, 2020. 2 The sale of the equipment on April 1, 2020. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM, DO NOT USE "" BETWEEN NUMBERS: Dr. Cash 10000 C Land 10000 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). T. X O B Q

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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.Shine Corporation bought equipment on April 2, 2017 for P200,000. This equipment had an estimated useful life of 5 years and a salvage value of P20,000. Depreciation was computed using the sum of the years’ digits method. The equipment was sold for P120,000 on June 30, 2019. Prepare complete journal entries with supporting computation for the years 2017, 2018 and 2019.
Cullumber Company purchased a new machine on October 1, 2022, at a cost of $110,000. The company estimated that the machine will have a salvage value of $10,000. The machine is expected to be used for 10,000 working hours during its 5-year life. (a) Your answer is correct. Compute the depreciation expense under straight-line method for 2022. 2022 Depreciation expense 5000 eTextbook and Media Attempts: unlimited %24
Tinker Bell Company sold a delivery wing truck on March 1, 2022. Tinker had acquired the wing truck on January 1, 2019, for $ 52,000. At acquisition, Tinker had estimated that the truck would have a useful life of 6 years and a residual value of $4,000. On December 31, 2021, the truck had a book value of $ 28,000. Required: Prepare the journal entries to recognized the depreciation expense for 2022 prior to the sale and the sale of the truck assuming the truck sold at the following different prices (you will have 3 entries total): $32,000 26,000
On January 1, 2022, Betty DeRose, Inc. purchased equipment for $86,000. The equipment was assigned a useful life of 12 years and a salvage value of $5,300. On January 1, 2026, Betty DeRose decided the life of the equipment should be changed from 12 to 18 years with a salvage value of $3,800 at the end of the 18 years. Betty DeRose uses the straight-line depreciation method to calculate depreciation on its long-term assets. Calculate the amount of depreciation expense recorded on the equipment for 2026.
Annual depreciation expense on a building purchased a few years ago (using the straight-line method) is $4,800. The cost of the building was $96,000. The current book value of the equipment (January 1, 2021) is $81,600. At the time of purchase, the asset was estimated to have a zero salvage value. On January 1, 2021, the company decided to reduce the original useful life by 25% and to establish a salvage value of $4,800. The firm also decided double-declining-balance depreciation was more appropriate. Ignore tax effects. 1. Prepare the journal entry, if any, to report the accounting change under GAAP. 2. Record the annual depreciation for 2021.
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BLACK JACK Company purchased an automotive equipment on June 30, 2018 for $3,000,000. At the date of acquisition, the equipment had a life of six years with no salvage value. The equipment is being depreciated on a straight-line basis. On October 1, 2021, BLACK JACK determined that the equipment had a remaining useful life of five years. What is the depreciation expense for the year ended December 31, 2021?
Waterway Company purchased a computer system for $86,700 on January 1, 2019. It was depreciated based on a 8-year life and an $16,700 salvage value. On January 1, 2021, Waterway revised these estimates to a total useful life of 4 years and a salvage value of $10,500. Waterway uses straight-line depreciation Prepare Waterway's entry to record 2021 depreciation expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit
Oklahoma Company purchased a machine on January 1, 2020. The machine had a cost of $520,000 with a $20,000 residual value. The estimated useful life of the machine was eight years. On January 1, 2022, due to technological innovations, the estimated useful life was reduced by two years from the original life and the residual value was reduced by 50%. The company uses straight-line depreciation. Required: Prepare the journal entry to record the annual depreciation on December 31, 2022. Show your calculations before you post the journal entry.
On August 31, 2019, CAMELLIA Company purchased a new machinery for ₱540,000. The machinery has an estimated useful life of 5 years and depreciation is computed using the SYD method. Estimated salvage value of the machine is ₱60,000. What is the total accumulated depreciation on December 31, 2020?