1/1/17 Co buys land and pays $50,000 for the land, $500 for removal of scrap, $2500 for attorneys fee (associated with land purchase), $2500 real estate commission, $5000 for accrued taxes and $1000 for current-year taxes. Journalize the land purchase.

Also on 1/1/17, Co buys a car and a computer. The car costs $25,000 , sales tax $2000 and insurance during delivery $1000. The car has an estimated 100,000 miles of useful life and a salvage value of $3000. The computer costs $3000, tax $400 and insurance during deliver of $100. The computer has and estimated useful life of 5 years and a salvage value of $500. Journalize the purchase of both.

On 12/31/17 the car has 10,000 miles on the odometer. Journalize the depreciation of the car using units of activity and the computer using straight-line.

On 7/1/18 the car has 15,000 on the odometer and was sold for $25,250. Make the appropriate journal entries.

12/31/18 Co exchanges computer for a new one and pays $500 cash in the trade. The fair market value of the old computer is $2000. Remember the company is using straight line method for the computer. Make the appropriate journal entries.

1/1/19 Co pay $50,000 for a patent estimated to have a useful life of 10 years. Co also pays $10,000 research and development costs associated with the patent and $5000 legal costs to defend the patent in court. Make appropriate journal entries:

If 5 years ago a company bought a $10,500 piece of equipment with $500 salvage value and 10 year usefull life and is using straight-line depreciation what is its book value now? If it revises estimated life to 15 years (10 more years left) what is revised annual depreciation?

What is the cost-allocation account for a natural resource?

On January 1, Company sells merchandise and collects $5000 in cash which includes 6% sales tax. Journalize the sale.

Companys employees earned $20,000 for the pay period ending January 31. The Company withholds $1530 FICA, $4373 Federal Income Tax and $585 State Income Tax. Journalize the entry.

On January 1 Company issues a 5 year $1,000,000 face value bond with a 5% annual coupon paid semiannually. The company issues it for $916,884 for an effective interest rate of 7% and uses the effective-interest amortization method. Journalize the issuance:

What is the total cost of the borrowing over the life of the SSS bond?

Journalize the entry on July 1 to record SSSs payment of interest and the amortization of the bond discount (assume no accrual was made June 30):

What is the accrual JE on 12/31?

On July 1 Incorporation issues a 10 year $2,000,000 face value bond with a 6% coupon paid semiannually. The Company issues it for $2,327,029 at an effective interest rate of 4%. Journalize the issuance.

Journalize the adjustments made by Incorporation on December 31 for the accrual of interest expense and the amortization of bond premium.

On February 1, ABC redeems its $3,000,000 face value bonds before maturity at a price of $2,600,000. The bonds were originally issued at a discount and currently the account Discount on Bond Payable has a debit balance of $500,000. Journalize the bond redemption.