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Scherbatsky Company has the following transactions for the year. Record each transaction in the journal. Jan. 1 Jan. 30 Apr. 1 Oct. 1 Dec. 31 Acquired a copyright for $120,000 cash. The copyright has an expected useful life of 6 years. Purchased land and a building for $380,000. The company paid $76,000 in cash and signed a mortgage payable with Eriksen Financial for the remainder. Fair market value of the land was 95,000 and 285,000 for the building. (Hint: basket purchase)

Scherbatsky Company has the following transactions for the year. Record each transaction in the journal. Jan. 1 Jan. 30 Apr. 1 Oct. 1 Dec. 31 Acquired a copyright for $120,000 cash. The copyright has an expected useful life of 6 years. Purchased land and a building for $380,000. The company paid $76,000 in cash and signed a mortgage payable with Eriksen Financial for the remainder. Fair market value of the land was 95,000 and 285,000 for the building. (Hint: basket purchase)

FINANCIAL ACCOUNTING
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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Scherbatsky Company has the following transactions for the year. Record each transaction in the journal. Jan. 1 Jan. 30 Apr. 1 Oct. 1 Dec. 31 Acquired a copyright for $120,000 cash. The copyright has an expected useful life of 6 years. Purchased land and a building for $380,000. The company paid $76,000 in cash and signed a mortgage payable with Eriksen Financial for the remainder. Fair market value of the land was 95,000 and 285,000 for the building. (Hint: basket purchase)
Transcribed Image Text:Scherbatsky Company has the following transactions for the year. Record each transaction in the journal. Jan. 1 Jan. 30 Apr. 1 Oct. 1 Dec. 31 Acquired a copyright for $120,000 cash. The copyright has an expected useful life of 6 years. Purchased land and a building for $380,000. The company paid $76,000 in cash and signed a mortgage payable with Eriksen Financial for the remainder. Fair market value of the land was 95,000 and 285,000 for the building. (Hint: basket purchase)
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