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During the year, Ann Arbor Publishing Company had the following transactions: OZJAN: Pald $170,000 to purchase copyrights to a series of action/adventure books. The copyrights

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During the year, Ann Arbor Publishing Company had the following transactions: OZJAN: Pald $170,000 to purchase copyrights to a series of action/adventure books. The copyrights expire in 40 years, although sales of the books are expected to stop after 10 years. 03JAN: Purchased a parcel of land with a building on it for $3,500,000 cash. The building, which will be used in operations, has an estimated useful life of 30 years and a salvage value of $200,000. The assessed valuation for property tax purposes show the land at $280,000 and the building at $2,520,000. 15JAN: Pald $180,000 of the construction of an asphalt parking lot for customers. The parking lot is expected to last 15 years and has no salvage value. 15IAN: Pald $500,000 for the construction of a new entrance to the building. 03FEB: Purchased store equipment, paying the invoice price (including 7% sales tax) of $89,000 in cash. The estimated useful life of the equipment is 5 years, and the salvage value is $4,000. Use double declining balance depreciation. 15FEB: Paid $640 freight on the new equipment. 23FEB: Paid $1,200 to repair damages to floor caused when the store equipment was accidentally dropped as it was moved into place. 26FEB Paid $50 for an umbrella holder to pace inside from door (customer may place wet umbrellas in the holder). The holder is expected to last 30 years. 01MAR: Discovered a satellite dish antenna has been destroyed by lightning. The loss is covered by insurance and a claim is filed today. The antenna cost $18,360 when installed on July 1, 2018 and was being depreciated over 12 years with a $1,800 salvage value. Straight-line depreciation was last recorded on December 31, 2018. Ann Arbor Company expects to receive an insurance settlement of $17,000. 01APR: Paid $140,000 to remodel space to create an employee exercised area on the lower level in a leased building. The building's remaining useful life is 40 years: the lease on the building expires in 12 years. 01JUL: Paid $540,000 to acquire a patent on a new publishing process. The patent has a remaining legal life of 15 years. Ann Arbor Company estimates the new process will be utilized for 6 years before it becomes obsolete. 01NOV: Paid $180,000 to obtain a 4-year franchise to sell a new series of computerized do-it-yourself manuals. Prepare the Journal Entries to record these transactions. Prepare the year-end Journal Entries to record the depreciation and amortization. Unless specified, use straight-line depreciation and amortization. ENERAL LEDGER - Ann Arbor Company ate Account Name 2-Jan Debit Credit 3-Jan 15-Jan 15-Jan 3-Feb 15-Feb 23-Feb 26-Feb 1-Mar 1-Mar 1-Apr 1-Jul 1-Nov 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec

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