Prepare the necessary journal entries to record the following transactions in 2014 for the Splish Brothers. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Jan. 11 Mar. 6 Mar. 31 May. 10 Sept. 30 Nov. 1 Dec. 31 Discarded old store equipment that originally cost $27,000 and had a book value of $5,616 on the date of disposal. Depreciation on the equipment has already been recorded for the current year. Sold a delivery truck for $9,072. The delivery truck originally cost $57,240 and had accumulated depreciation of $49,680 on the date of sale. The depreciation on the truck has already been recorded for the current year. Straight-line depreciation is recorded for the first quarter of 2014 on equipment with a 4-year useful life that was purchased on January 1, 2012, for $29,592 with an estimated salvage value of $3,672. Incurred and paid for $604,800 of costs to develop a new patent. The patent has a legal life of 20 years. Paid the corporate attorney $69,600 to register the new patent (see May 10). Acquired RT Swifty, a small parts company, for $334,800 cash. RT Swifty had net assets totaling $950,400, net liabilities totaling $702,000. Recognized amortization for the last quarter of 2014.
Prepare the necessary journal entries to record the following transactions in 2014 for the Splish Brothers. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Jan. 11 Mar. 6 Mar. 31 May. 10 Sept. 30 Nov. 1 Dec. 31 Discarded old store equipment that originally cost $27,000 and had a book value of $5,616 on the date of disposal. Depreciation on the equipment has already been recorded for the current year. Sold a delivery truck for $9,072. The delivery truck originally cost $57,240 and had accumulated depreciation of $49,680 on the date of sale. The depreciation on the truck has already been recorded for the current year. Straight-line depreciation is recorded for the first quarter of 2014 on equipment with a 4-year useful life that was purchased on January 1, 2012, for $29,592 with an estimated salvage value of $3,672. Incurred and paid for $604,800 of costs to develop a new patent. The patent has a legal life of 20 years. Paid the corporate attorney $69,600 to register the new patent (see May 10). Acquired RT Swifty, a small parts company, for $334,800 cash. RT Swifty had net assets totaling $950,400, net liabilities totaling $702,000. Recognized amortization for the last quarter of 2014.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 10RE: Use the information in RE3-6, (a) assuming Ringo Company makes reversing entries, prepare the...
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Transcribed Image Text:Date
Jan. 11 V
Mar. 6 V
Mar. 31
May 10
Sep. 30
Nov 1
V
Dec. 31 v
Account Titles and Explanation
Gain on Disposal of Plant Assets
ass
Debit
5,616
Credit
Transcribed Image Text:Prepare the necessary journal entries to record the following transactions in 2014 for the Splish Brothers. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required,
select "No Entry" for the account titles and enter o for the amounts.)
Jan.
11
Mar.
6
Mar.
31
May.
10
Sept.
30
Nov.
1
Dec.
31
Discarded old store equipment that originally cost $27,000 and had a book value of $5,616 on the date of disposal.
Depreciation on the equipment has already been recorded for the current year.
Sold a delivery truck for $9,072. The delivery truck originally cost $57,240 and had accumulated depreciation of
$49,680 on the date of sale. The depreciation on the truck has already been recorded for the current year.
Straight-line depreciation is recorded for the first quarter of 2014 on equipment with a 4-year useful life that was
purchased on January 1, 2012, for $29,592 with an estimated salvage value of $3,672.
Incurred and paid for $604,800 of costs to develop a new patent. The patent has a legal life of 20 years.
Paid the corporate attorney $69,600 to register the new patent (see May 10).
Acquired RT Swifty, a small parts company, for $334,800 cash. RT Swifty had net assets totaling $950,400, net
liabilities totaling $702,000.
Recognized amortization for the last quarter of 2014.
Date
Mac &
Jan, 11. v
Account Titles and Explanation
Gain on Disposal of Plant Assets
ass
Debit
5,616
Credit
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