On July 15, 2016, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000 and $325,000, respectively. The book value of the patent and equipment on the date of sale were $120,000 and $400,000 (cost of $550,000 less accumulated depreciation of $150,000), respectively. Required: Prepare the journal entries to record the sales of the patent and equipment

Q: The Delap Company accounts for non-current assets using the cost model. On 25, April 2016, Delap…

A: The impairment loss included in the statement of comprehensive income amounts to the difference in…

Q: Kingbird Manufacturing owns equipment that cost €65,100 when purchased on January 1, 2017. It has…

A: (a) Sold for €41,160 on January 1, 2020. No depreciation will be charged on January 1, 2020 (b)…

Q: cquire the land, Snow Company paid a P15,000 commission to a real estate agent. P25,000 were…

A: Land D   Particulars Amount Purchase Price 220,000 Agent's Commission 15,000 Cost of…

Q: Acquisition Cost On January 1, 2017, Zircon Enterprises purchased a piece of equipment with a list…

A: Every business needs some asset for the production of the product and establishing business such as…

Q: Which depreciation method is the company using in each example?

A:

Q: Carolina Co. purchased a machine at a cost of $780,000 on January 1, 2016. On January 1, 2021, the…

A: Answer : Transaction has commercial Substance   DATE PARTICULAR DEBIT CREDIT         Jan 1,…

Q: During December 2016, Smythe Company decides to sell Division F (a component of the company). On…

A: To calculate the pretax income or loss from discontinued operations, we subtract the expenses from…

Q: Prepare journal entries to (a) update depreciation for 2018 and (b) record the sale. (Credit account…

A: Cost of Equipment = $52800 Accumulated Depreciation as on December 31, 2017 = $41800 Carrying Amount…

Q: On January 1, 2017, Salina Company purchased land and a building for $2,240,000. At the time of the…

A: The expense incurred should be capitalised, of it would provide benefits for the long period.

Q: The following are the transactions concerning the intangible assets of Healy Bros. Corporation for…

A: Intangibles are the assets that the company uses to bring future economic benefits to the entity for…

Q: On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: Janes Company provided the following information on intangible assets: a. A patent was purchased…

A: Amortization is the process of reducing the value of intangible asset over a specified…

Q: JPHEI Company purchased a machine on January 1, 2016 for P6,000,000. At the date of acquisition, the…

A: Solution: Accumulated depreciation for 3 years (from 2016 to 2018) = (Cost - residual value) * 3/ 6…

Q: On July 1, 2017, Agincourt Inc. sold land having a fair value of $700,000 in exchange for a 4-year…

A: Lets understand the basics. When asset is transferred against the promissory note than gain on sale…

Q: Wildhorse Company purchased equipment on January 2, 2021, for $118,600. The equipment had an…

A: Depreciation means the loss in value of assets because of usage of assets, passage of time or change…

Q: Binson Company has provided information on intangible assets as follows: A patent was purchased…

A: Binson company Intangible section of Balance sheet As on December 31, 2019   Patent, net…

Q: The Randolph Company purchased a patent on June 1, 2016 for $1,188,000 with twelve years remaining…

A: Date Particulars Amount 01-06-2016 Purchase of Patent 11,88,000 It is given that the estimated…

Q: On January 1, 2020, Techno Company sold a machine for RO15,000 cash. The Machine originally cost RO…

A: Solution:- Preparation of Journal entry as follows under:-

Q: Martinez, Inc. acquired a patent on January 1, 2017 for $41,700 cash. The patent was estimated to…

A: Particulars Amount Value of patent Acquired $41,700 Less : Amortization for 2017 (41700/10years)…

Q: On September 30, 2014, Leeds LTD. acquired a patent in conjunction with the purchase of another…

A: 1.

Q: ABC Corporation acquired in 1/1/2010 a secon-hand piece of machinery by HZ Corporation in cash. In…

A: Depreciation is considered as deducting the cost of a business asset over a long period of time,…

Q: Pronghorn Corporation purchases a patent from Larkspur Inc. on July 1, 2017, for $267,000. The…

A: The patent is amortized over the 4 years, which is the useful life, instead of the legal life.

Q: Z Limited purchases an asset for $50,000 from CashCrow Company on 1 January 2015 for cash. Z Ltd…

A: Total cost of the machine = Purchase price + Delivery and installation costs = $50,000 +$60000 =…

Q: Janes Company provided the following information on intangible assets: A patent was purchased from…

A: Journal entry: A journal entry serves as documentation of a business's financial activities kept in…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.