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how to solve thos JNl entries ure.com/courses/11867/assignments/249618#submit Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as
how to solve thos JNl entries
ure.com/courses/11867/assignments/249618#submit 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 S600.000 Building 3500,000 Machinery $900,000 Patents 5500.000 The building is depreciated using the double-declining balance method. Other information is: Salvage value 550.000 Estimated useful life in years The machinery is depreciated using the units-of-production method. Other information is: Salvage value. percentage of cost 10% Estimated total production output in ZUUUUU Actual production in units was as 2019 40.000 2020 G0.000 2021 20.000 The patents are amortized on a straight-line basis. They have no salvage valul Estimated useful life of patents in 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. Other information is Fair value of old machinery $240.000 Trade-in allowance 30 OOO List price for new machinery 340.00 Estimated useful life of new machinery in 20 File Upload Google Doc Studio Google Drive Office 365 Upload a file or choose a file you've already uploaded Ne file chosen om/courses/11867/assignments/249618#submit 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 Other information is: Fair value of old machinery $240.000 Trade-in allowance $280.000 List price for new machinery $403.200 Estimated useful life of new machinery in 20 Estimated salvage value of new 38.064 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 1095 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 Cost of the addition to the machinery on August 14, 2023 7 Depreciation on the new machinery for 2023 Upload Google Doc Studio Google Drive Office 365 ad a file, or choose a file you've already uploaded. No file chosen O AI ure.com/courses/11867/assignments/249618#submit 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 S600.000 Building 3500,000 Machinery $900,000 Patents 5500.000 The building is depreciated using the double-declining balance method. Other information is: Salvage value 550.000 Estimated useful life in years The machinery is depreciated using the units-of-production method. Other information is: Salvage value. percentage of cost 10% Estimated total production output in ZUUUUU Actual production in units was as 2019 40.000 2020 G0.000 2021 20.000 The patents are amortized on a straight-line basis. They have no salvage valul Estimated useful life of patents in 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. Other information is Fair value of old machinery $240.000 Trade-in allowance 30 OOO List price for new machinery 340.00 Estimated useful life of new machinery in 20 File Upload Google Doc Studio Google Drive Office 365 Upload a file or choose a file you've already uploaded Ne file chosen om/courses/11867/assignments/249618#submit 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 Other information is: Fair value of old machinery $240.000 Trade-in allowance $280.000 List price for new machinery $403.200 Estimated useful life of new machinery in 20 Estimated salvage value of new 38.064 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 1095 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 Cost of the addition to the machinery on August 14, 2023 7 Depreciation on the new machinery for 2023 Upload Google Doc Studio Google Drive Office 365 ad a file, or choose a file you've already uploaded. No file chosen O AI Step by Step Solution
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