Crane Corporation owns a patent that has a carrying amount of $612,000. Crane expects future net cash flows from this patent to total $382.500. The fair value of the patent is $474.300 Prepare the journal entry if necessary to record the loss on impairment (Credit account titles are automatically indented when the amount is entered. Do not indent manually If no entry is required, select No Entry for the account titles and enter O for the amounts Ust debit entry before credit entry) Account Titles and Explanation Debit Credit

Crane Corporation owns a patent that has a carrying amount of $612,000. Crane expects future net cash flows from this patent to total $382.500. The fair value of the patent is $474.300 Prepare the journal entry if necessary to record the loss on impairment (Credit account titles are automatically indented when the amount is entered. Do not indent manually If no entry is required, select No Entry for the account titles and enter O for the amounts Ust debit entry before credit entry) Account Titles and Explanation Debit Credit

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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At the end of the year the Investment in Bacolod account of the home office isP300,500. However, there are transactions discovered to have errors.•Bacolod branch bought equipment on June 1, 2020 costing P63,800 for thehome office's use and the policy is to record the asset in Bacolod's books.During that time the home office recorded the equipment and credited itsreciprocal account of its Bacolod branch.•The policy of the company regarding the equipment's depreciation is that ithas a life of 8 years with no salvage value and the straight-line method shouldbe used. No entry has been made by the home office and branch.•The home office ships merchandise to Bacolod amounting to P96,700. Bacolodrecorded the transaction as P97,600•Bacolod pays the home office's creditors in the amount of P32,400 and sends adebit memo to the home office.•Upon receipt of the debit memo, the home office debited its reciprocalaccount in the amount of P23,400 twice. What is the net adjustment of the investment…
Write double entry? On 7 November 2021 there was a fire in the warehouse, in which inventory valued at $12,000 was destroyed. Under the terms of the insurance contract, the insurance company has stated that it will only pay out the first $3,000 of the claim. No entries have yet been made to record this.
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