For each of the following transactions or adjustments indicate the effect of the transaction or adjustment on assets, beties, and net income by entering for each account affected the account name and amount and indicating whether it is an addition of a Subcon Transaction has been done as an illustration Net income is not affected by every transaction. In some cases, only one Column may be afected because all of the specific accounts afected by the transaction are included in that category. a. Recorded 5200 of depreciation de se b. Sold and that had o n ly cost $9.000 for $13 000 in cas c. Acquired a new machine under a financing lease The present value of Nitre base payments, discounted at 9 was 1.000 d. Recorded the testa ment of $2100 for the loved machine patch e. Recorded a $6.000 payment for the cost of developing and registering a trademark Recognized periode amortization for the trademark in te using a 34 yearustule 9. So d ruction woment for $6.000 in the mentong cost $50.000, and the accurated depreciation account has an adjusted balance of $23.00 was determined at a suo year-todate depreciation entry must be recorded before the sale transaction can be recorded Record the acustent and the For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an addition () or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category. a. Recorded $200 of depreciation expense. b. Sold land that had originally cost $14.400 for $10,700 in cash. c. Recorded a $69.800 payment for the cost of developing and registering a patent d. Recognized periodic amortization for the patent (in part c) using the maximum statutory useful life. e. Capitalized $3.400 of cash expenditures made to extend the useful life of production equipment. f Expensed $1.400 of cash expenditures incurred for routine maintenance of production equipment 9. Sold a used machine for $7,700 in cash. The machine originally cost $28,000 and had been depreciated for the first two years of its five-year useful life using the double-declining-balance method. (Hint You must compute the balance of the accumulated depreciation account before you can record the sale.) h. Purchased a business for $324.000 in cash. The fair values of the net assets acquired were as follows: Land, $37,100: Buildings, $194,000: Equipment, $96.000: and Long-Term Debt. $68,000 Transaction Assets a. Accumulated depreciation -200 Liabilities Net Income Depreciation expenses -200
