Exercise 8-17 (Algo) Disposal of assets LO P2 Diaz Company owns a machine that cost $125,800 and has accumulated depreciation of $94,200. Prepare the entry to record the disposal of the machine on January 1 in each separate situation. 1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $16,900cash. 3. Diaz sold the machine for $31,600cash. 4. Diaz sold the machine for $40,100 cash. Journal entry worksheet Record the disposal of the machine receiving nothing in return. Note: Enter debits before credits. Exercise 8-17 (Algo) Disposal of assets LO P2 Diaz Company owns a machine that cost $125,800 and has accumulated depreciation of $94,200. Prepare the entry to record the disposal of the machine on January 1 in each separate situation. 1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $16,900cash. 3. Diaz sold the machine for $31,600cash. 4. Diaz sold the machine for $40,100 cash. Journal entry worksheet Record the sale of the machine for $16,900 cash. Note: Enter debits before credits. Exercise 8.20 (Algo) Depletion of natural resources LO P3 A company pays $790,400 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $62,400 cash to access the mine, which is estimated to hold 104,000 tons of iron. The estimated value of the land after the iron is removed is $20,800. Note: If no entry is required for o tronsection/event, select "No journal entry required" in the first account field. 1. Prepare the January 1 entry to record the cost of the iron mine. 2. Prepare the December 31 year-end adjusting entry if 21,200 tons of iron are mined but only 18,800 tons are sold this first year. Journal entry worksheet 2 Prepare the January 1 entry to record the cost of the iron mine. Note: Enter debits before credits. Exercise 8-20 (Algo) Depletion of natural resources LO P3 A company pays $790,400 cash to acquire an iron mine on January 1. At that same time, it incurs additional costs of $62,400 cash to access the mine, which is estimated to hold 104,000 tons of iron. The estimated value of the land after the iron is removed is $20,800. Note: If no entry is required for o transaction/event, select "No journal entry required" in the first account field. 1. Prepare the January 1 entry to record the cost of the iron mine. 2. Prepare the December 31 year-end adjusting entry if 21,200 tons of iron are mined but only 18,800 tons are sold this first year. Journal entry worksheet Prepare the December 31 year-end adjusting entry if 21,200 tons of iron are mined but only 18,800 tons are sold the first year. Note: Enter debits before credits. QS 8-19 (Algo) Preparing an income statement LO P1, P3, P4 Selected accounts from Westeros Company's adjusted trial balance for the year ended December 31 follow. $11,50023,0003,300 Prepare its income statement. Exercise 8-21 (Algo) Amortization of intangible assets LO P4 Milano Gallery purchases the copyright on a painting for $480,000 on January 1 . The copyright is good for 12 more years, after which the copyright will expire and amyone can make prints. The company plans to sell prints for 19 years. Prepare entries to record the purchase of the copyright on January 1 and its annual amortization on December 31. Journal entry worksheet Record the year-end adjusting entry for the amortization expense of the copyright. Note: Enter debits befere credits. Exercise 8-17 (Algo) Disposal of assets LO P2 Diaz Company owns a machine that cost $125,800 and has accumulated depreciation of $94,200 Prepare the entry to record the disposal of the machine on January 1 in each separate situation. 1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $16,900 cash. 3. Diaz sold the machine for $31,600 cash. 4. Diaz sold the machine for $40,100 cash. Journal entry worksheet 4 Record the sale of the machine for $31,600 cash. Note: Enter debits before credits. Exercise 8-17 (Algo) Disposal of assets LO P2 Diaz Company owns a machine that cost $125,800 and has accumulated depreciation of $94,200. Prepare the entry to record the disposal of the machine on January 1 in each separate situation. 1. The machine needed extensive repais and was not worth repairing Diaz disposed of the machine, receiving nothing in retum. 2. Diaz sold the machine for $16,900 cash. 3. Diaz sold the machine for $31,600cash. 4. Diaz sold the machine for $40,100 cash. Journal entry worksheet 1 Record the sale of the machine for $40,100 cash. Hote: Enter debits before credits. Milano Gallery purchases the copyright on a painting for $480,000 on January 1 . The copyright is good for 12 more years, after which the copyright will expire and anyone can make prints. The company plans to sell prints for 19 years. Prepare entries to record the purchase of the copyright on January 1 and its annual amortization on December 31. Journal entry worksheet 2 Record the purchase of the copyright on a painting for $480,000 cash. Note: Enter debits before credits
