Atlas Manufacturing incurred the following costs during 2022:Spent $15,000 on a major overhaul for a tractor trailer rig. The overhaul is1expected to increase the service life of the rig by three years.Rearranged and reconfigured the maintenance, loading, and unloading2.facilities at a cost of $75,000. The rearrangement is expected to result insubstantial cost savings and increased efficiency over the next several years.Acquired a patent for $40,000 related to the processing of the companyproducts in exchnage for 1,000 shares of Atlas' common stock. The stock hadpar value of $1 per share and a fair value of $40 per share.Paid annual insurance premium on the property for the coming year, $7,700.Scrapped equipment during the year which had a total cost of $110,000 andaccumulated depreciation of $95,000. No cash was received for the scrap.Assume accumulated depreciation current.6.Landscaped the property and added outdoor lights, $9,000.Purchased a truck for $30,200 in exchange for a note payable, due in 12months @ 8% interest. The company also paid cash of $3,200 for freight and$3,800 for installation and testing of the equipmentRequired:Prepare journal entries to record the above costs.3.

As per IAS 16, Property, plant, and equipment, the cost incurred on the asset, which increases its…

Atlas Manufacturing incurred the following costs during 2022: Spent $15,000 on a major overhaul for a tractor trailer rig. The overhaul is expected to increase the service life of the rig by three years. Rearranged and reconfigured the maintenance, loading, and unloading facilities at a cost of $75,000. The rearrangement is expected to result in substantial cost savings and increased efficiency over the next several years. Acquired a patent for $40,000 related to the processing of the company products in exchnage for 1,000 shares of Atlas' common stock. The stock had a par value of $1 per share and a fair value of $40 per share. 3 Paid annual insurance premium on the property for the coming year, $7,700. Scrapped equipment during the year which had a total cost of $110,000 and accumulated depreciation of $95,000. No cash was received for the scrap. Assume accumulated depreciation current. 6. Landscaped the property and added outdoor lights, $9,000. Purchased a truck for $30,200 in exchange for a note payable, due in 12 months @ 8% interest. The company also paid cash of $3,200 for freight and $3,800 for installation and testing of the equipment 7. Required: Prepare journal entries to record the above costs.

Atlas Manufacturing incurred the following costs during 2022: Spent $15,000 on a major overhaul for a tractor trailer rig. The overhaul is expected to increase the service life of the rig by three years. Rearranged and reconfigured the maintenance, loading, and unloading facilities at a cost of $75,000. The rearrangement is expected to result in substantial cost savings and increased efficiency over the next several years. Acquired a patent for $40,000 related to the processing of the company products in exchnage for 1,000 shares of Atlas' common stock. The stock had a par value of $1 per share and a fair value of $40 per share. 3 Paid annual insurance premium on the property for the coming year, $7,700. Scrapped equipment during the year which had a total cost of $110,000 and accumulated depreciation of $95,000. No cash was received for the scrap. Assume accumulated depreciation current. 6. Landscaped the property and added outdoor lights, $9,000. Purchased a truck for $30,200 in exchange for a note payable, due in 12 months @ 8% interest. The company also paid cash of $3,200 for freight and $3,800 for installation and testing of the equipment 7. Required: Prepare journal entries to record the above costs.

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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