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Hello, need help with the journal entries for this assignment Required Jnl. Entries Copyright Brown Company paid cash to purchase the assets of Coffee Company
Hello, need help with the journal entries for this assignment
Required Jnl. Entries Copyright Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $3.500.000 Assets acquired Land seo0.000 Building 40 000 Machinery 3.500.000 Patents 5.000.000 The building is depreciated using the double-declining balance method Other information is Salvage value 350.000 Estimated useful life in years The machinery is depreciates using the units-of-production method Other information is Salvage value. percentage of cost 109 Estimated total production output in 200FDDU Actual production in units was as 2019 40.000 2020 20.000 2021 Zoololo The patents are amortized on a straight-line basis. They have no salvage value Estimated useful life of patents in 30 On December 31, 2020. the value of the patents was estimated to be $100.000 Where applicable, the company uses the year rule to calculate depreciation and amortization expense in the years of acquisition and disposal. Its fiscal year-end is December 31 The machinery was traded on December 2.2021 for new machinery Fair value of old machinery $240.000 Trade-in allowance 3283.000 List price for new machinery 3463200 Estimated useful life of new machinery in Estimated salvage value of new 53,064 The new machinery is depreciated using the straight-line method and On August 14, 2023. an addition was made. This amount was material. Other relevant information is as follows: Amount of addition, paid in cash $100.000 Number of years of useful life from 2023 (original machinery and addition) 30 Salvage value. percentage of addition Required: Prepare journal entries to record 1 The purchase of the assets of Coffee 2 Depreciation and amortization expense on the purchased assets for 2019 3 The decline (if any) in value of the patents at December 31 4 The trade-in of the old machinery and purchase of the new 5 Depreciation on the new machinery for 2021 o Cost of the addition to the machinery on August 14. 2023 7 Depreciation on the new machinery for 2023 Step by Step Solution
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