Gone & Gone have a Patent that has a value on the books of $22,000. Journalize the sale of the patent for $19,000.
Q: alculate amortization and exhaustion for each transaction. A fast-food business acquired the…
A: Solution 1: Annual amortization of copyright = Cost of copyright / shelf life = $80,000 / 15 =…
Q: Megan Appliances leased an office space from Cindy Real Estate, Inc on July 1, 2020. The lease…
A: A lease is an agreement between two parties one is known as lessor and another is known as lessee. A…
Q: On January 1 of this year, Diaz Boutique pays $170,000 to modernize its store. Improvements include…
A: In accounting, amortization refers to expensing the acquisition cost minus the residual value of…
Q: In 2019, BigDream Inc. just started its operation and decided to produce its inventory in-house. It…
A: Straight line depreciation method refers to charging same or constant depreciation over the life of…
Q: For each unit of computer sold, Blue Company sells a service contract. The contract provides that…
A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the…
Q: Sarjit Systems sold software to a customer for $110,000. As part of the contract, Sarjit promises to…
A: Journal Entry is the primary step to record the transaction in the books of accounts.The increase in…
Q: revenue
A: The Franchise Business Model A franchise allows you, the franchisee or investor, to operate a…
Q: Johnson Company receives royalties on a patent it developed several years ago. Royalties are 5% of…
A: In accounting, journal entries are a record of financial transactions that a business has made. Each…
Q: Pina Universe charges an initial franchise fee of $ 234,000. Upon the signing of the agreement, a…
A: a. Date Particulars Debit ($) Credit ($) August 1, 2020 Cash 26,000 Notes receivable…
Q: You are required to write necessary treatments per IFRS 15. Also show the net effect of this…
A: 1. Contract price of the sophisticated machinery is for 200,000. A sales of 200,000 is recorded on…
Q: A company pays a patent for $ 98,000 with a useful life of 12 years. Calculate amortization. You…
A: Amortization = Cost of patent/Useful life
Q: Purchased a $15,000 piece of factory equipment with a 3% Note Payable which will be paid in full at…
A: When an asset is purchase, then asset purchased will be debited and Cash or Bank or Liability…
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: 1. Calculate the amount of transaction price.
Q: Curt Rugs is holding a 2-week carpet sale at Jacob's Club, a local warehouse store. Curt Rugs…
A: This problem involves missing components which is to be ascertained step by step by a blend of…
Q: On March 1, 2012, Jason's Deli loaned $12,000 to Mark Johnson for one year at 5 percent interest.…
A: Introduction: Interest refers to the amount charged by the lender on the lent amount. The borrower…
Q: On November 1, 2021 a customer enters into a contract with MyWatch, Inc. to purchase an eWatch plus…
A: The Accrual basis accounting states that revenue should be recognized as and when the service or…
Q: A company sells a stove to a customer for a price of $2,000 which includes the installation. The…
A: Here asked for multi question we will solve for first question as per guidelines. If you need…
Q: Help Chancellor Limited sells an asset with a $3.0 million fair value to Sophie Incorporated. Sophie…
A: Sale value (S) = $3,000,000Interest rate (r) = 0.06Number of payments (n) = 6Annual payment = ?Since…
Q: Nash Corporation sells computers under a 2-year warranty contract that requires the corporation to…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: On September 3, 2016, Ivory Company acquired an apartment building for $1,500,000 (with $300,000…
A: Straight line method is also called fixed installment method, original value method, It is one of…
Q: AAA Co. assigns some of its patents to other enterprises under a variety of licensing agreements. In…
A: Following is the answer to the given questin
Q: Purchased a copyright for a design for $15,000 with a life left on the copyright of 25 years. The…
A: Amortization: It is the process of allocating the value of an intangible asset over its definite…
Q: May 1st 2016 for 745,000 with 5 years useful life and nil residual value. In 2017, the first machine…
A: Under the straight line depreciation approach, the value of an object is consistently reduced over…
Q: n April 1, Year 1, a new customer purchased a piece of equipment from Thomas Tech Center by paying…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Benton Company purchased a used machine for $123,000. The machine required installation costs of…
A: Machine cost is the cost that is spent by the individual or the company for the acquisition of the…
Q: Value Dealership Inc. markets and sells the vehicles to retail customers. Along with a new vehicle…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: (b) Three months before the CD was due to mature, Bill needed his CD money, so a friend agreed to…
A: Here, Required=? Part A. Value of CD =? Part B. Present value of CD before maturity =? Part C.…
Q: (A machine with a purchase value of $850 t life of the machine is 7 years, calculate the of the…
A: Depreciation expense is the reduction in the value of an asset due to normal wear and tear, the…
Q: Carla Corporation sells DVD players. The corporation also offers its customers a 4-year warranty…
A: Warranty revenue recognized = Unearned warranty revenue / Contract term
Q: Commonly Corp. agrees to sell 100 of its products to M&H Co. for P30, 000 in August 2021. (P300 per…
A: Cash reserves are the bank's cash and cash equivalents profits that are saved for upcoming business…
Q: On 11/01/20X1, TK purchases a new truck at a price of EUR 205,000 plus VAT on Ziel. The transfer of…
A: All costs required to bring an asset to its present location and condition for its intended use…
Q: 6. On May 1, 2025, Cullumber Company enters into a contract to transfer a product to Gary Company on…
A: Hi student Since there are multiple questions, we will answer only first question. Deferred revenue…
Q: Taylor Swift Corporation purchases a patent from Salmon Company on January 1, 2025, for $54,000. The…
A: Intangible assets are those that cannot be touched or seen and have no inherent worth. They are…
Q: Purchase machinery by paying $50,000 down and agreeing on 4 equal installments of $40,000 payable at…
A: Carrying Amount = $40,000 x PVAF (8%, 4) = $40,000 x 3.31213…
Q: Novak Corp. offers its customers a 5-piece knife set in exchange for $9 and the purchase of its CC…
A: Journal entry : Method of recording financial transactions in the book of original entry by debiting…
Q: A new ford employer is purchased for 50,000 RO. It has a life period of 5 years with a residual…
A: Here in this case, we are required to calculate the book value at the end of 2 years. Depreciation…
Q: ROSE Corporation has a premiums payable balance of P242,000 on December 31, 2019 for a promotional
A: These are obligation which are to be paid with in one year and one operating cycle, whichever is…
Q: Under the Installment method, how much gross profit will Shoreline recognize in Year 1? (to the…
A: First, we need to determine the annual payment by inputting the following information in a financial…
Q: The Company purchased @ Euro 50,000. Purchase was nade in two lots. The first lot September 10 and…
A: First lot is on 10 September and second lot on October 20 . On October 20 , we paid 25% , it means ,…
Q: Sandhill Co. purchases a new delivery truck for $78000. The sales taxes are $4400. The logo of the…
A: Note: Truck’s annual license is not included in the cost of the new truck because it will be paid…
Q: Requirements 1. Assuming the straight-line method of amortization, make journal entries to record…
A: Depreciation , amortization , depletion all means the fall in value of assets due to one reason or…
Q: An ice machine with a cash price of $75,000 is purchased on the instaliment plan with a $15.000 down…
A: Installment is the process of reimbursement of loan periodically by the borrower of the loan to the…
Q: Flapper Jack's Pancake Restaurants Inc. sells franchises for an initial fee of $38,000 plus…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Gone & Gone have a Patent that has a value on the books of $22,000.
Journalize the sale of the patent for $19,000.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A machine was purchased on 1st January 2015 at a cost of OMR 120,000. At the time of Sale, the machine has a net book value of OMR 80,000. The organization made a profit on disposal of OMR 20,000. What is the value of sales proceed for the machine?The Strug Company purchased office furniture and equipment for $8,600 and agreed to pay for the purchase by making five annual installment payments beginning one year from today. The installment payments include interest at 8%. What is the required annual installment payment? Note: Use tables, Excel, or a financial calculator (EV of $1. PV of $1, EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Multiple Choice $1,994 $1720 $1,466 $2.154Moon Ltd. sells custom made furniture on 24 months' interest free terms to qualifying customers. On 30 June 2023, Moon Ltd. sells $71,600 of furniture to Jessie Ltd., which cost $40,300, payable by 30 June 2025. By 30 June 2024, only 40% of the ordered furniture was delivered. The appropriate interest rate for this transaction is determined to be 11.20% per annum. Moon Ltd. uses perpetual system. By 30 June 2025, all payment was made, and the remaining furniture was delivered. Required: Question 4 Calculate the present value of the $71,600 to be received on 30 June 2025.
- On 1 October 2020, ABC Limited sold three machines to a customer for a total amount of R 1 900 000. The three machines were delivered to the premises of the customer on the same day. Included in the sales contract are 1-year warranties for all three of the machines. A warranty for each of these machines may cost R 20 000 to obtain. The customer received a trade discount of 10 % for both tractors. ABC Limited awards a settlement discount of 6% to any customer who settles their account in full within 30 days of making a purchase. This particular customer often buys machinery from ABC Limited and based on past dealings with the customer ABC Limited expects that the customer will settle their account within 30 days. The customer settled their account in full on 3 November 2020. How many performance obligations are contained in the contract? 01 2 3 061. DATE 2. On 1/1/18 Meganco purchased a new lathe for $400,000 installed. The physical life of the lathe is 10 years with a salvage value of $20,000 at the end of that time period. The lathe was purchase for a contract that will provide revenue to Meganco for 5 years. The lathe will be sold at the end of the contract for $50,000. Required: DATE Make the required journal entry on 12/31/18 and 12/31/19 assuming that the lathe is depreciated using 200% double declining balance. ACCOUNT Required: Kenco purchased a new CNC lathe 6 years ago that had an installed cash cost of $475,000. The lathe was being depreciated over 8 years using straight line deprecation without taking salvage value into consideration. On 12/31 of the sixth year, Kenco sold the lathe to a machine tool dealer for $85,000. DR ACCOUNT CR Assume that lathe has been depreciated over six years and that accumulated depreciation is up to date. Make the required journal entry to record the transaction in Kenco'saccounting…Using the following unrelated situations. A. A patent with a 10-year remaining legal life was purchased for $280,000. The patent will be usable for another 8 years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $38,000, but the market value of the patent is $600,000. The company expects to be able to use this patent for all 20 years of its life. Calculate the annual amortization expense. A. $ В. $ Prepare a journal entry to record the expense. If an amount box does not require an entry, leave it blank. A. В. 00
- Using the following unrelated situations. A. A patent with a 12-year remaining legal life was purchased for $360,000. The patent will be usable for another 10 years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $24,000, but the market value of the patent is $700,000. The company expects to be able to use this patent for all 16 years of its life. Calculate the annual amortization expense. A. $ B. $ Prepare a journal entry to record the expense. If an amount box does not require an entry, leave it blank. А. Previous 00 B.Don James purchased a new automobile for $14,000. Don made a cash down payment of $3,500 and agreed to pay the remaining balance in 30 monthly installments, beginning one month from the date of purchase. Financing is available at a 24% annual interest rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:Calculate the amount of the required monthly payment. (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)Peter's Records purchases a new Record-Pressing Machine for $77,000, on the 1st January 2020 The machine is expected to have a useful life of 5 years, and a residual value of $1,000. The machine is capable of printing 200,000 vinyl records during its lifetime. Peter applies the Units-of-Production depreciation method to all his machinery The quantity of vinyl records Peter will make in the future is fixed at: 1st Year 53,000 units 2nd Year 34,500 units 3rd Year 32,900 units 4th Year 47,200 units 5th year 32,400 units The correct journal entry to record the depreciation for the 3rd Year would be: Select one: а. Debit Depreciation Expense $12,502 Credit Accumulated Depreciation $12,502
- One of the College of Engineering laboratories bought a machine for its purchasing value ($50000) The life of the machine is (5) years. The book value at the end of the life of the machine (year Fifth) ($5000) maintenance and operation cost the first year (1250$) the Second (1500$) Third year (1750$) year fourth year (2000$) Fifth year ($2,500). 10% discount rate? 1- Find the amount of annual depreciation using the sum of the numbers of years of the useful life -2 Find the book value for each year 3- Find the time to replace the machineBelmont Publishing Company purchased the copyright to a basic computer textbook for $80,000. The usual life of a textbook is about four years. However, the copyright will remain in effect for another 50 years. Calculate the annual amortization of the copyright.GerrinAL sells five machines to VernAL for $500,000 per machine, the list price for the machines is $600,000. In a separate contract they sell maintenance services on the five machines for the first year. They charge $12,000 per machine for the maintenance, the list price for maintenance on the machine. As an incentive to sign the maintenance contract, GerrinAL gives VernAL a 25% discount on the purchase of machines in the next 75 days. No discounts are granted to other customers and they project there is 41% probability they will use the discount to purchase one machine with a stand-alone selling price of $600,000. What is the approximate contract consideration allocated to the discount? Select one: a. $150,000 b. $120,000 c. zero d. $50,000 e. $61,500