A B C D E F G H J L Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $3,500,000 Assets acquired: Land S600.000 Building $500.000 Machinery $900.000 Patents $500,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value $50.000 Estimated useful life in years The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost Estimated total production output in Actual production in units was as 2019 40.000 2020 00.000 2021 20.000 20 10% 200,0UU 7 3 3 The patents are amortized on a straight-line basis. They have no salvage valu Estimated useful life of patents in 30 On December 31, 2020, the value of the patents was estimated to be $100,000 Where applicable, the company uses the year rule to calculate depreciation and amortization expense in the years of acquisition and disposal. Its fiscal year-end is December 31. The machinery was traded on December 2, 2021 for new machinery. Other information is: Fair value of old machinery $240.000 Trade-in allowance S288.000 List price for new machinery S403,200 Estimated useful life of new machinery in 20 Estimated salvage value of new $8,084 The new machinery is depreciated using the straight-line method and On August 14, 2023, an addition was made. This amount was material. Other relevant information is as follows: Amount of addition, paid in cash S100.000 Number of years of useful life from 2023 (original machinery and addition): 30 Salvage value, percentage of addition 10% 3 3 ) 1 2 3 3 Required: Prepare journal entries to record: Required Jnl. Entries Copyright + eady A B G . L M 3 C D E F Estimated useful life in years The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost Estimated total production output in 200.000 Actual production in units was as 2019 40.000 2020 50.00U 2021 20.000 1096 3 5 7 3 3 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 The patents are amortized on a straight-line basis. They have no salvage valu Estimated useful life of patents in 30 On December 31, 2020, the value of the patents was estimated to be $100,000 Where applicable, the company uses the year rule to calculate depreciation and amortization expense in the years of acquisition and disposal. Its fiscal year-end is December 31. The machinery was traded on December 2, 2021 for new machinery. Other information is: Fair value of old machinery $240.000 Trade-in allowance $288.000 List price for new machinery S403,200 Estimated useful life of new machinery in Estimated salvage value of new $8.064 The new machinery is depreciated using the straight-line method and On August 14, 2023, an addition was made. This amount was material. Other relevant information is as follows: Amount of addition, paid in cash $100.000 Number of years of useful life from 2023 (original machinery and addition) 30 Salvage value, percentage of addition 10% 20 Norco ON+coco no Required: Prepare journal entries to record: 1 The purchase of the assets of Coffee. 2 Depreciation and amortization expense on the purchased assets for 2019. 3 The decline (if any) in value of the patents at December 31 4 The trade-in of the old machinery and purchase of the new 5 Depreciation on the new machinery for 2021. 6 Cost of the addition to the machinery on August 14, 2023. 7 Depreciation on the new machinery for 2023. 3 4 Required Unl. Entries | Copyright Brown Company GENERAL JOURNAL Dec. 2019 Description PR Debit Credit Required Jnl. Entries Copyright
