The following are selected 2022 transactions of Tamarisk Corporation.Jan. 1Purchased a small company and recorded goodwill of $225,000. Its useful life is indefinite.April 1Purchased for $136,000 a patent with an estimated useful life of 5 years and a legal life of 20 years.(a)Your answer is partially correct.Prepare necessary adjusting entries at December 31 to record amortization required by the events above. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts.)DateAccount Titles and ExplanationDec. 31Amortization ExpensePatents(To record amortization expense for patents)Dec. 31GoodwillPatentsDebit20400340600Credit20400340600

The objective of the question is to prepare the necessary adjusting entries at December 31 to record…

Answered: The following are selected 2022…

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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In early January 2024, Ayayai Corporation applied for a trade name, incurring legal costs of $15,800. In January 2025, Ayayai incurred $7,200 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization 12/31/24 book value 2025 amortization 12/31/25 book value $ LA LA $ of SUPPORT
Rivendell Corporation uses the accrual method of accounting and has the following assets as of the end of 2020. Rivendell converted to an S corporation on January 1, 2021. (Leave no answer blank. Enter zero if applicable.)Asset Adjusted Basis FMVCash $ 40,000 $ 40,000Accounts receivable 30,000 30,000Inventory 130,000 60,000Land 100,000 125,000Totals $ 300,000 $ 255,000 b. Assuming the land was valued at $200,000, what would be Rivendell’s net unrealized gain at the time it converted to an S corporation? c. Assuming the land was valued at $125,000 but that the inventory was valued at $85,000, what would be Rivendell’s net unrealized gain at the time it converted to an S corporation?
B. January 17, 2020, Roddick Company incurred $172,000 in successfully defending one of its patents in an infringement suit. The patent expires during December 2023. Required: Prepare the journal entry needed at the date of the transaction and on December 31, 2020 to record any resultant amortization.
3. What should be reported as noncurrent liability from this transaction at December 31, 2021 after adjusting entries are made assuming that the effective interest method is used? * On January 1, 2021, Better Company sold property to Best Company. There was no established exchange price for the property, and Best gave Better a P,000,000 non-interest bearing note payable in 5 equal annual installments of P400,000, with the first payment due December 31, 2021. The prevailing rate of interest for a note of this type is 10%. The present value of the note at 10% was P758,160 at January 1, 2021. What should be the balance of the Discount on Notes Payable account on the books of Better Company at December 31, 2021 after adjusting entries are made assuming that the effective interest method is used? 2758,160 2633,976 497,374 2136,602 none of them
Makati Inc. acquires a building on February 1, 2020 at a cost of 5,500,000. The building has an estimated useful life of 40 years and an estimated salvage value of 500,000. Question 1. What is the journal entry to record the purchase of building? Question 2. What is the adjusting entry on December 31 assuming the company prepares it's financial statements on this date . Question 3. What is the amount of expense to be recognized for 2020? Question 4. What is the book value of the building as of December 31,2020? Please answer it completely. Don't answer if you don't answer it completely. Thanks.
41 Reported in the ledger of Mayumi Company On December 31, 2017, is a Patent account with a balance of P120,000, and accumulated amortization of P 60,000. The Patent is being amortized for its useful life of eight years. On July 1, 2018, Mayumi spent P 30,000 to defend the patent against an infringement suit. On January 1, 2019, with the rapid change in technology, the company determined that the patent will be of no value to the company and that a loss on patent obsolescence has to be recognized.How much is the loss on patent obsolescence?
Sabana S.A acquired specialized equipment on June 28, 2020. Its cost of 17000000, its residual value is 1,800,000.00Its useful life is estimated to be 12 years. The company will depreciate applying the straight-line method from the month following the purchaseThe company carries out annual accounting closings every December 31, uses a business month for its calculations and applies IFRS in a comprehensive manner. On January 1, 2023, the company hires an expert who in his report indicates that the fair value of the equipment is now 30,000,000.00. Sabana S.A revalues its equipment using the Re method expressed and its policy is to transfer a portion of the revaluation surplus to the retained earnings account, as the asset is used.Based on the previous statement, the credit to the surplus item is for:
Bridgeport Corporation commenced operations in early 2025. The corporation incurred $44,500 of costs such as fees to underwriters, legal fees, state fees, and promotional expenditures during its formation. Prepare journal entries to record the $44,500 expenditure and 2025 amortization, if any. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.). Account Titles and Explanation (To record costs incurred) (To record amortization expense) Debit Credit
An assert was purchased on 1st July 2017 for a cash price of MYR 205,000. It is a policy of the business to depreciate its asset using the reducing balance method at the rate of 15% per annum on a yearly basis. Calculate the asset’s net book value on 31st December 2019, assuming that the business closes its account on that date. Select one: a. MYR 174,250 b. MYR 125,895.63 c. MYR 137,004.06 d. MYR 125,960.50

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