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
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
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

Business

Accounting

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

See similar textbooks

Similar questions

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
On July 1, 2023 Jackson Company purchased factory equipment for $880,000 with an estimated $40,000 salvage value. The estimated useful life for the equipment is 12 years. During 2023, 2024, and 2025 the equipment is depreciated using the straight-line method. During 2026, $36,000 in maintenance is required on the machine to keep it running up to its standard operating specifications. Also, in 2026, $115,000 is spent to improve the equipment's efficiency and prolong its useful life. The new useful life is expected to be an additional 12 years beginning in 2026 and the revised salvage value is $25,000. Instructions . 4. Explain the accounting treatment of the $115,000 in equipment improvement that occurred in 2026. 5. What journal entry is required to record annual depreciation for 2026? hevni pris
Conrad Inc. purchased a patent for $1,000,000 for a specialty line of patented switch plate covers and outlet plate covers specifically designed to light up automatically when the power fails. Assume the switch plate patent was purchased January 1, 2020, and it is being depreciated over a period of ten years. Assume that Conrad Inc. does not use an accumulated amortization account but instead charges amortization directly against the intangible asset account. Required: 1. This part of the question is not part of your Connect assignment. 2. Prepare the journal entries to record the purchase and amortization of the switch plate patent in 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the purchase of patent. Note: Enter debits before credits. Event a General Journal Debit Credit View general journal Record entry Clear entry
PIKACHU purchased an equipment for P540,000 on January 1, 2020. The equipment has an estimated salvage value of P60,000 and estimated useful life of 5 years. The equipment is being depreciated using the sum-of-years digit method. How much is the carrying value of the equipment on December 31, 2021?
Rayya Company purchases a machine for $151,200 on January 1, 2021. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is sold on July 1, 2025, during its fifth year of service. Prepare entries to record the partial year’s depreciation on July 1, 2025, and to record the sale under each separate situation. (1) The machine is sold for $64,800 cash. (2) The machine is sold for $51,840 cash. 1. Record the depreciation expense as of July 1, 2025. 2. Record the sale of the machinery for $64,800 cash. 3. Record the machine sold for $51,840 cash. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Equipment was acquired on January 1, 2025 at a cost of $162,000. The equipment was originally estimated to have a salvage value of $8,200 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2027 using the straight-line method. On January 1, 2028, the estimated salvage value was revised to $14,200 and the useful life was revised to a total of 8 years. Prepare the journal entry to record depreciation expense for 2028. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Depreciation expense for 2028 $ Adjusting journal entry at 12/31/28: Date Account Titles and Explanation Dec. 31 eTextbook and Media List of Accounts Save forlater Debit Credit
[The following information applies to the questions displayed below.] NewTech purchases computer equipment for $267,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $25,000. rev: 07_27_2017_QC_CS-94103 Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation.
A company purchased a piece of equipment for $30,000 on January 1, 2019. Management estimates salvage value of $3,000 and a useful life of five years. It uses the straight‐line method of depreciation. Where applicable, it applies the half‐year rule. On December 31, 2021 the equipment’s fair value is estimated to be $3,000. What is the impairment loss for 2021? $3,000 $5,400 $7,800 $10,800
On January 1, 2021, Truesdale, Incorporated, purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000. Using the straight-line method, the amount of depreciation that should be recorded during 2021, is approximately O $3,000 O $10,000 O $11,000 O $30,000