I need help with the journal entries below and the fixed turnover ratio, units of production depreciation, and additional expense.
On January 1, 2018, the general ledger of Parts Unlimited includes the following account balances Debit Credit Accounts Cash Accounts Receivable Inventory Land Equipment Accumulated depreciation Accounts Payable Common stock Retained Earnings $ 182,400 32,400 57,800 360,000 396,500 $ 192,000 34,800 540,000 262,300 $1,029,100 $1,029,100 Totals From January 1 to December 31, the following summary transactions occur: Purchased inventory on account, $345,800 a. Sold inventory on account, $645,200. The inventory cost $362,600 b. Received cash from customers on account, $578,700 C. Paid cash on account, $348,500 d. Paid cash for salaries, $114.700, and for utilities, $72,700 In addition, Parts Unlimited had the following transactions during the year. April 1 Purchased equipment for $115,000 using a note payable, due in 12 months plus 8% interest. The company also paid cash of $5,200 for freight and $5,800 for installation and testing of the equipment. The equipment has an estimated residual June 30 Purchased a patent for $60,000 from a third-party marketing company related to the packaging of the company's products. October 1 Sold equipment for $52,200. The equipment cost $80,700 and had accumulated depreciation of $57,400 at the beginning of November 15 Several older pieces of equipment were improved by replacing major components at a cost of $74,100. These improvements value of $16,000 and a ten-year service life The patent has a 20-year useful life, after which it is expected to have no value the year. Additional depreciation for 2018 up to the point of the sale is $10,500. are expected to enhance the equipment's operating capabilities. [Record this transaction using Alternative 2 - capitalization of new cost.] On January 1, 2018, the general ledger of Parts Unlimited includes the following account balances Debit Credit Accounts Cash Accounts Receivable Inventory Land Equipment Accumulated depreciation Accounts Payable Common stock Retained Earnings $ 182,400 32,400 57,800 360,000 396,500 $ 192,000 34,800 540,000 262,300 $1,029,100 $1,029,100 Totals From January 1 to December 31, the following summary transactions occur: Purchased inventory on account, $345,800 a. Sold inventory on account, $645,200. The inventory cost $362,600 b. Received cash from customers on account, $578,700 C. Paid cash on account, $348,500 d. Paid cash for salaries, $114.700, and for utilities, $72,700 In addition, Parts Unlimited had the following transactions during the year. April 1 Purchased equipment for $115,000 using a note payable, due in 12 months plus 8% interest. The company also paid cash of $5,200 for freight and $5,800 for installation and testing of the equipment. The equipment has an estimated residual June 30 Purchased a patent for $60,000 from a third-party marketing company related to the packaging of the company's products. October 1 Sold equipment for $52,200. The equipment cost $80,700 and had accumulated depreciation of $57,400 at the beginning of November 15 Several older pieces of equipment were improved by replacing major components at a cost of $74,100. These improvements value of $16,000 and a ten-year service life The patent has a 20-year useful life, after which it is expected to have no value the year. Additional depreciation for 2018 up to the point of the sale is $10,500. are expected to enhance the equipment's operating capabilities. [Record this transaction using Alternative 2 - capitalization of new cost.]
