Instructions Starting questions Chart of Accounts Journal Instructions Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: A. Timber rights on a tract of land were purchased for $3,589,500 on February 22. The stand of timber is estimated at 4,786,000 board feet. During the current year, 1.127,100 board feet of timber were cut and sold B on December 31, the company determined that $3,599,000 of goodwill was impaired. C Governmental and legal costs of $7,140,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 10 years. Amortization is to be for three-fourths of a year Required: 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items 2. Journalize the adjusting entries required to record the amortization depletion or impairment for each item. Refer to the Chart of Accounts for exact wording of account titles. Instructions Starting questions Chart of Accounts Journal tarting questions Determine the amount of the amortization, depletion, or impairment for the current year for each of the items in the Instructions, A . S . $ tons Starting questions Chart of Accounts Journal Chart of Accounts X CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale of Vehicles 621 Gain on Sale of Equipment 622 Gain on Sale of Timber Rights 623 Gain from Sale of Goodwill 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land EXPENSES 510 Cost of Merchandise Sold 123 Vehicles 520 Salaries Expense 124 Accumulated Depreciation Vehicles 125 Equipment 126 Accumulated Depreciation Equipment 521 Advertising Expense 522 Depreciation Expense-Vehicles 523 Delivery Expense 524 Repairs and Maintenance Expense 130 Timber Rights 529 Selling Expenses 131 Accumulated Depletion tarting questions Chart of Accounts Journal x of Accounts 124 Accumulated Depreciation-Vehicles 521 Advertising Expense 125 Equipment 522 Depreciation Expense-Vehicles 126 Accumulated Depreciation-Equipment 523 Delivery Expense 130 Timber Rights 524 Repairs and Maintenance Expense 131 Accumulated Depletion 529 Selling Expenses 132 Goodwill 531 Rent Expense 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 532 Depreciation Expense-Equipment 533 Depletion Expense 534 Amortization Expense-Patents 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Vehicles 721 Loss on Sale of Equipment 722 Loss on Sale of Timber Rights 723 Loss from Impaired Goodwill EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Instructions Starting questions Chart of Accounts Journal Journal 2 Journalize the transactions and the adjusting entries on December 31 Refer to the Chart of Accounts for exact wording of account titles. Scroll down to access pages 2 through 3 of the journal a Timber rights on a tract of land were purchased for $3,589,500 on February 22 The stand of timber is estimated at 4,786,000 board feet During the current year, 1,127 100 board foer of timber were cut and sold. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REY DERIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries b. On December 31, the company determined that $3,599,000 of goodwl was impaired Instructions Starting questions Chart of Accounts Journal Journal b on December 31, the company determined that 83,599,000 of oocil was impared PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REE DELIT CREDIT LIABILITIES ASSETS EQUITY Adjusting Entries cGovernmental and legal costs of S7, 140.000 were incurred on April 3 in obtaing a catent with an estimated economice of 10 years Amortization is to be for three fourths of a year PAGE JOURNAL ACCOUNTING EQUATION POSTRE DO DET CREDIT ASSETS LILILITIES CITY DESCRUTION Magisting Entries