Exercise 2

January 2018, PT Alam bought a medicinal plants for sale in a track of land, the following are the data (price are in Rupiah):

Items Price/year

Land price 500,000,000

Board feet 80,000,000

Plant cut and sold 1,000,000

Goodwill impaired 30,000,000

Patent 70,000,000

Life (patent) 5 year

Used (patent) 2/5 year

Plant price Rp/Board feet 200

Instructions:

4. Calculate the depletion rate

5. Calculate the amortization

6. Journalize the adjusting entries required record the depletion

7. Journalize the adjusting entries for amortization.

8. Journalize the adjusting entries for impairement.