All this is a single exercise
Amortization and depletion entries Instructions Starting questions Instructions Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: A. Timber rights on a tract of land were purchased for $2,442,370 on February 22. The stand of timber is estimated at 5,957,000 board feet. During the current year, 1.013,900 board feet of timber were cut and sold. B. On December 31, the company determined that S3,385,000 of goodwill was impaired. C. Governmental and legal costs of S6,426,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 10 years. Amortization is to be for three- fourths of a year. Required: 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items. 2. Journalize the adjusting entries required to record the amortization, depletion or impairment for each item. Refer to the Chart of Accounts for exact wording of account titles Amortization and depletion entries Instructions Starting questions Starting questions 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the items in the Instructions. A. s B $ C 5 Amortization and depletion entries Instructions Starting questions A Chart of Accounts Journal CHART OF ACCOUNTS General Ledger REVENUE 410 Sales 610 Interest Revenue 620 Gain on Sale of Vehicles 621 Gain on Sale of Equipment 622 Gain on Sale of Timber Rights 623 Gain from Sale of Goodwill ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 123 Vehicles 124 Accumulated Depreciation- Vehicles 125 Equipment 126 Accumulated Depreciation- Equipment 130 Timber Rights 131 Accumulated Depletion 132 Goodwill 133 Patents EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Vehicles 523 Delivery Expense 524 Repairs and Maintenance Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense Equipment 533 Depletion Expense Amortization and depletion entries instruction Starting Chart et accum Journal Journal 2. Journalize the transactions and the adjusting entries on De Accounts for exact wording of account titles. Scroll down to ac a. Timber rights on a tract of land were purchased for $2.442. is estimated at 5,957,000 board feet. During the current year, and sold. DATE b. On December 31, the company determined that $3,385,00 JOURNAL C. Governmental and legal costs of $6,425,000 were incurred estimated economic life of 10 years. Amortization is to be for JOURNAL BRE TERTON Americation and deletion entries Instruction Starting to Chart ol Rocount Journal Journal isting entries on December 31. Refer to the Chart of s. Scroll down to access pages 2 through 3 of the journal. chased for $2,442,370 on February 22. The stand of timber ng the current year, 1,013,900 board feet of timber were cut ACCOUNTING EQUATION POST BT GHEDE ASSETS COUNTY ned that $3,385,000 of wil was impaired. ACCOUNTING EQUATION DT ASTS 2,000 were incurred on April 3 in obtaining a puts with an tization is to be for three-fourths of a year. ACCOUNTING EQUATION POSET D GHEDE AN EQUITY
