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On April 30, 2020, Riverbed Corporation ordered a new passenger ship, which was delivered to the designated cruise port and available for use as of

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On April 30, 2020, Riverbed Corporation ordered a new passenger ship, which was delivered to the designated cruise port and available for use as of June 30, 2020. Overall, the cost of the ship was $97 million, with an estimated useful life of 12 years and residual value of $30 million Riverbed expects that the new ship, as a whole, will provide its greatest economic benefits in its early years of operation. After further research and discussion with management, it is determined that the ship consists of major parts with differing useful lives, residual values, and patterns of providing economic benefits: Part Engines (6) Cost $965,000 per engine $3,900,000 $87.31 million Useful life 8 years 10 years 15 years Residual value $110,000 per engine $505,000 $15.31 million Pattern of benefits Varies with activity Highest in early years Evenly over life of body Total output (nautical miles) 7 million 7.80 million 12.50 million Hull Body The ship's first voyage took place on August 1, 2020. The ship sailed a total of 315,000 nautical miles in 2020. Riverbed prepares financial statements in accordance with IFRS. Prepare the Journal entry to record the purchase of the ship, assuming that Riverbed paid cash for the purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Debit Credit Account Titles and Explanation June 30, 2020 Activate Window Prepare the journal entries to record depreciation expense for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually If no entry is required, select "No Entry for the account titles and enter for the amounts. Do not round intermediate calculations. Round answers to o decimal places, e.. 5.275.) Date Amount Totes and Explanation De December 31, 2020 (To record depreciation on Ships Engines) December 31, 2020 (To record depreciation on Ships ) December 31, 2020 To record depreciation on Ships Body

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