Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Data related to the acquisition of timber rights and intangible assets during the current year ended Docember 31 are as follows: a. Tinber rights on

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Data related to the acquisition of timber rights and intangible assets during the current year ended Docember 31 are as follows: a. Tinber rights on a tract of land were purchased for $1,406,160 on February 22. The stand of timber is estimated at 5,859,000 board foet. During the current year, 1,145,800 board feet of timber wore cut and sold. b. On December 31, the company determined that $3,522,000 of goodwill was impaired c. Governmental and legal costs of \$7,194,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 10 years. Amorization is to be for three-fourths of a year. Aequired: 1. Dotermine the amount of the amortization, depletion, or impaiment for the current yoar for each of the foregoing iterns. 2. Journalize the adjusfing entries requined to rocord the amorization, dopletion, or impaiment for each item. CHART OF ACCOUNTS 124 Accumulated Depreciation-Vehicles 51 maverising expense 125 Equipment 522 Depreciation Expense-Vehicles 126 Accumulated Depreciation-Equipment 523 Delivery Expense 130 Timber Rights 524 Repairs and Maintenance Expense 131 Accumulated Depletion 529 Selling Expenses 132 Goodwill 531 Rent Expense 133 Patents 532 Depreciation Expense-Equipment 533 Depletion Expense LIABILITIES 534 Amortization Expense-Patents 210 Accounts Payable 535 Insurance Expense 211 Salaries Payable 536 Supplies Expense 213 Sales Tax Payable 539 Miscellaneous Expense 214 Interest Payable 710 Interest Expense 215 Notes Payable 720 Loss on Sale of Vehicles 721 Loss on Sale of Equipment EQUITY 722 Loss on Sale of Timber Rights 310 Common Stock 723 Loss from Impaired Goodwill 311 Retained Earnings 312 Dividends 1. Determine the amount of the amortization, depletion, or impaiment for the current year for each of the items in the instructions. 2. Woumalize the transacions and the adjusting entries on Docomber 37. Scrof down to acoess pages 2 through 3 of the foumat a. Timber nights on a thact of land were purchased for $1,406,160 on February 22 . The stand of timber is estimated at 5,659,000 board feet During ithe current yeac, 1, 145, 800 bourd foet of timber were cut and sovd b. On Decamber 31, the company delorminod that $3,522,000 of poodtill was impaired. c. Governmental and legal costs of 57,194,000 were incured on Aoril 3 in oblaining a patent with an estimated econamic Mle of ro years. Amortiradian is to be lor thvee-fourths of a year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Study Guide For Use With Managerial Accounting

Authors: Ronald M. Copeland, Paul E. Dascher, Jerry R. Strawser, Robert H. Strawser

1st Edition

0873937651, 978-0873937658

More Books

Students also viewed these Accounting questions

Question

List and discuss the three types of bankruptcy filings.

Answered: 1 week ago

Question

Evaluate employees readiness for training. page 275

Answered: 1 week ago