needs to be done on excel

1 2 3 4 Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $2,990,000 Assets acquired: Land $600,000 Building $600,000 Machinery $500,000 Patents $600,000 5 6 7 8 9 10 11 The building is depreciated using the double-declining balance method. Other information is: Salvage value $60,000 Estimated useful life in years 30 12 13 14 15 16 17 18 The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 10% Estimated total production output in units 400,000 Actual production in units was as follows: 2019 40,000 2020 80,000 2021 120,000 19 20 21 22 23 24 25 The patents are amortized on a straight-line basis. They have no salvage value. Estimated useful life of patents in years 20 On December 31, 2020, the value of the patents was estimated to be $900,000 26 27 28 29 30 31 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 $336,000 List price for new machinery $504,000 Estimated useful life of new machinery in years 20 Estimated salvage value of new machinery $15,120 The new machinery if depreciated using the stright-line method and year rule. 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): 20 Salvage value, percentage of addition 10% 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, 2020. 4 The trade-in of the old machinery and purchase of the new machinery. 5 Depreciation on the new machinery for 2021. 6 Cost of the addition to the machinery on August 14, 2023. 7 Depreciation on the new machinery for 2023. B3 90 33 34 35 36 27 0 20 15 0 12 113 14 1 120 12