(worth $35,000), inventory (worth $83,750), and copyrights $12,250). Instructions: 1. Prepare the July 1 entry for Aeroplus Corporation to record the purchase. 2. Prepare the December 31 entry for Aeroplus Corporation to record amortization of intangibles. The copyrights have an estimated useful life of 5 years with a residual value of $2,250.
(worth $35,000), inventory (worth $83,750), and copyrights $12,250). Instructions: 1. Prepare the July 1 entry for Aeroplus Corporation to record the purchase. 2. Prepare the December 31 entry for Aeroplus Corporation to record amortization of intangibles. The copyrights have an estimated useful life of 5 years with a residual value of $2,250.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![(worth $35,000), inventory (worth $83,750), and copyrights (worth
$12,250).
Instructions:
1. Prepare the July 1 entry for Aeroplus Corporation to record the
purchase.
2. Prepare the December 31 entry for Aeroplus Corporation to
record amortization of intangibles. The copyrights have an
estimated useful life of 5 years with a residual value of $2,250.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd32d6cc9-9800-43be-ac45-0d98c4f2b23d%2F2aeb24bf-9420-41f7-b32e-68429302e510%2Ftnjg1a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(worth $35,000), inventory (worth $83,750), and copyrights (worth
$12,250).
Instructions:
1. Prepare the July 1 entry for Aeroplus Corporation to record the
purchase.
2. Prepare the December 31 entry for Aeroplus Corporation to
record amortization of intangibles. The copyrights have an
estimated useful life of 5 years with a residual value of $2,250.
![On April 1, 2020, Aeroplus Corporation purchased Johnson
Company by paying $200,000 cash and issuing a $50,000 note
payable to Steve Johnson. At April 1, 2020, the balance sheet of
Johnson Company was as follows:
Cash
Receivables
Inventory
Land
Buildings (net)
Equipment (net)
Copyrights
$38,500
66,500
75,000
30,000
56,250
Instructions:
52,500
7,500
$326,250
Accounts payable
Stockholders' Equity
$160,000
166,250
$326,250
The recorded amounts all approximate current values except for land
(worth $35,000), inventory (worth $83,750), and copyrights (worth
$12,250).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd32d6cc9-9800-43be-ac45-0d98c4f2b23d%2F2aeb24bf-9420-41f7-b32e-68429302e510%2F8yrdj6f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On April 1, 2020, Aeroplus Corporation purchased Johnson
Company by paying $200,000 cash and issuing a $50,000 note
payable to Steve Johnson. At April 1, 2020, the balance sheet of
Johnson Company was as follows:
Cash
Receivables
Inventory
Land
Buildings (net)
Equipment (net)
Copyrights
$38,500
66,500
75,000
30,000
56,250
Instructions:
52,500
7,500
$326,250
Accounts payable
Stockholders' Equity
$160,000
166,250
$326,250
The recorded amounts all approximate current values except for land
(worth $35,000), inventory (worth $83,750), and copyrights (worth
$12,250).
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