Togo's Sandwich Shop had the following long-term asset balances as of January 1, 2021: Accumulated Depreciation Book Value $ 69,000 348,160 104,800 51,000 Cost Land Building Equipment Patent $ 69,000 544,000 131,600 85,000 $ (195,840) (26,800) (34,000) Togo's purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a 9- year useful life using the straight-line method with an estimated residual value of $11,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2019 and 2020. 2. For the year ended December 31, 2021, record amortization expense for the patent. (If no entry is required for a transaction/ever select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the amortization on the patent. Note: Enter debits before credits. Transaction General Journal Debit Credit 1

Togo's Sandwich Shop had the following long-term asset balances as of January 1, 2021: Accumulated Depreciation Book Value $ 69,000 348,160 104,800 51,000 Cost Land Building Equipment Patent $ 69,000 544,000 131,600 85,000 $ (195,840) (26,800) (34,000) Togo's purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a 9- year useful life using the straight-line method with an estimated residual value of $11,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2019 and 2020. 2. For the year ended December 31, 2021, record amortization expense for the patent. (If no entry is required for a transaction/ever select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the amortization on the patent. Note: Enter debits before credits. Transaction General Journal Debit Credit 1

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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