1. In 2020, Staged Home Ltd. completed the following transactions involving delivery trucks: July 5 Traded in an old truck and paid $25,600 in cash for fumiture. The accounting records on July 1 showed the cost of the old truck at $36.000 and related accumulated depreciation of $6,000. The furniture was estimated to have a six-year life and a $6,268 trade-in value. The invoice for the exchange showed these items! Price of the furniture (equal to its fair value) $ 45,100 Trade-in allowance (19,500) Total paid in cash $ 25,600 Dec. 31 Recorded straight-line depreciation on the furniture (to nearest whole month). Required: Prepare journal entries to record the transactions. No Date General Journal Debit Credit 11 .2.1.3. 4 .5 .6 .7 . 8 9 10 11 12 13 14 15 16 17 18 On January 2, 2018, Country Lumber installed a computerized machine in its factory at a cost of $168,000. achine's useful life was estimated at four years or a total of 190,000 units with a $35,000 trade-in value. Country Lumber's year-end is December 31. Calculate depreciation for each year of the machine's estimated useful life under each of the following methods: a. Straight-line b. Double-declining-balance C. Units-of-production, assuming actual units produced were: Year Units 2018 39,900 2019 43,550 2020 54,200 54.2 7 2021 2,000 Year a. Straight-Line b. Double-Declining-Balance c. Units-of-Production 2018 2019 2020 2021 Total Al 10 poinbatud a ra tant for C560 Ite remaininn lomallife is 7 year and Rainhour Total 3. On April 3, 2020, Rainbow Studios purchased a patent for $56,000. Its remaining legal life is 7 years and Rainbow Studios estimates that the patent will be useful for another 4 years. The correct adjusting entry to record amortization of the patent on December 31, 2020 is 14,000 Amortization Expense, Patent Accumulated Amortization, Patent 14.000 8,000 Amortization Expense, Patent Accumulated Amortization, Patent 8,000 Amortization Expense, Patent 10,500 Accumulated Amortization, Patent 10,500 6,000 Amortization Expense, Patent Accumulated Amortization, Patent 6,000 E. Patent 10.500 Accumulated Amortization, Patent 10,500 Student 4. Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of 5245,000, 5280,000, and $175,000, respectively. They anticipate annual profit of $360,000 and are considering the following alternative plans of sharing profits and losses: a in the ratio of their initial investments; or b. Salary allowances of $110,000 to Conway, $85,000 to Chan, and $60,000 to Scott and interest allowances of 12% on initial investments, with any remaining balance shared equally. Required: 1. Use the schedule to show how a profit of $360,000 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) T Share to Conway Profit (Loss) Sharing Plan (a) Share to Chan Share to Scott Total Calculations Profit Profit Salary allowances (b) interest allowances Total salaries and interest allocation Balance of Profit Balance allocated equally Balance of Profit Shares of partners Prepare the December 31, 2020, Journal entry to close Income Summary assuming they agree to use alternative (b) and the profit is $360,000. 5. The balance sheet for Umi Sustainable Seafood Inc. reported the following components of equity on December 31, 2019 Common shares, unlimited shares authorized, 20,800 shares issued and outstanding $376,000 Retained earings 224,000 Total equity $600,000 In 2020, Umi had the following transactions affecting shareholders and the equity accounts: Jan. 5. The directors declared a $4.00 per share cash dividend payable on Feb 28 to the Feb 5 shareholders of record Feb. 28 - Paid the dividend declared on January 5, July 6 - Sold 1,150 common shares at $39,20 per share. Aug 22 - Sold 1,650 common shares at $28.00 per share Sept. 5 - The directors declared a $4.00 per share cash dividend payable on Oct 28 to the Oct. 5 shareholders of record Oct 28 - Paid the dividend declared on September 5. Dec 31 Closed the $348,000 credit balance in the Income Summary account Required: 1. Prepare journal entries to record the transactions and closings for 2020. The company uses a Cash Dividends account when dividends are declared Ne 1. In 2020, Staged Home Ltd. completed the following transactions involving delivery trucks: July 5 Traded in an old truck and paid $25,600 in cash for fumiture. The accounting records on July 1 showed the cost of the old truck at $36.000 and related accumulated depreciation of $6.000. The furniture was estimated to have a six-year life and a $6,268 trade-in value. The invoice for the exchange showed these items! Price of the furniture (equal to its fair value) $ 45,100 Trade-in allowance (19,500) Total paid in cash $ 25,600 Dec. 31 Recorded straight-line depreciation on the furniture (to nearest whole month). Required: Prepare journal entries to record the transactions. No Date General Journal Debit Credit