Chapter 9-Accounting ws ferences Mailings Review View A- A Normal No Spacing Heading1Heading 2 Q1: Hampton, Inc. purchased a van on January 1, 2018, for $800,000. Estimated life of the van was five years, and its estimated residual value was $90,000. Hampton uses the straight-line method of depreciation. Prepare the journal entry to record the depreciation expense for 2018 on the van. Omit explanation Q2:On January 1, 2019, a corporation acquired a truck for $100,000. Residual value was estimated to be $20,000. The truck can be driven for 50,000 miles over the next three years. Actual usage of the truck was recorded as S8,640 miles for the first year. Give the journal entry to record depreciation for the first year calculated as per the units-of-production method. (Do not round your intermediabe calculations) Q3 On October 1, 2018, Natural, Inc. purchased a patent for $100,000 cash. Although the patent gives legal protection for 20 years, it is expected to be used for only eight years Journalize the purchase of the pabent. Omit explanation. 94: On October 1, 2018, Mobile, Inc purchased a patent for $100,000 cash. Although the patent gives legal protection for 20 years, it is expected to be used for pnly eight years. The patent has no residual value. journalize the amortization expense for 2018. Assume straight-line amortization. Omit explanation Q5: Geller Electronics paid $200,000 to acquire Tabletz, Inc, an electronic gadget-advertising website. At the time of the acquisition Tabletz's balance sheet reported total assets of $200,000 and liabilities of $100,000. The fair market value of Tabletz's assets was $200,000. The fair market value of its liabilities was $100,000. Journalize the acquisition of Tabletz in the books of Geller Electronics Omit explanation. Q6: Equipment was punchased for $24,000 on Janary 1, 2018. The equipment's estimated useful life was ive years, and its residual value was $4,000. The straight-line method of depreciation was used. Prepare the joumal entry to record the sale of the equipment for s$5,000 on Jamuary 3, 2019. The company has a calendar year accounting period. Omit explanation Q7: City Petroleum Products owns furmiture that was purchased for $20,000 Accumulated depreciation is $16,000. The furniture was sold for $3,800. Prepare the journal entry to record this transaction. Omit Qs: Work Room Corp, purchased equipment for $45,000. Total depreciation of $36,000 was recorded.On January 1, 2019, Work Room exchanged the equipment for new equipment, paying $65,000 cash. The market value of the new equipment is $65,000. Prepare the jourmal entry to record this transaction Assume the exchange had commercial substance Omit explanation MacBook Pro 80
