- Phoenix Corporation borrowed $200,000 on February 1, 20-1, signing a one year, 105, note payable to Canada Bank. The adjusting entry required on December 31,201 is: - On June 30, 20-2, Madonna Enterprises sold equipment with an original cost of $100,000 for $60,000. The equipment was purchased January 1, 20-1, and was amortized using the straight-line method assuming a six year useful life and $10,000 salvage value. - What is the gain or loss of the sale of the asset? - What is the journal entry to record the amortization? - Intangible Assets - Patents, Goodwill, Copyrights, Software, Research and Development - Allowance for Doubtful Accounts is a contra asset (credit balance) that is a current asset - Maggie Company has a balance of $90,000 in Accounts Receivable and a $4,000 credit balance in Allowance for Doubtful Accounts. If a specific customer's account with a balance of $500 is written off as uncollectible, the net realizable value of the accounts receivable will be: trial balance of Phoenix Company at December 31, 20-1 includes the following: Debits200,000900,000Credits600 counts Receivable lowance for Doubtful Accounts ales (all on credit) ;ales Returns and Allowances o If Phoenix Company uses the aging method and estimates that $8,000 of receivables will be uncollectible, prepare the adjusting entry. - If Phoenix Company estimates uncollectibles at 1% of net credit sales, prepare the appropriate adjusting entry. o. Assume that on February 10, 20-2 the specific account of Mia Martina with a balance of $600, is deemed uncollectible. Record the write-off. - Assume that on May 12, 20-2 Mia Martina submits payment of her outstanding balance above. Record the appropriate entries. - Madonna Company purchased land and a modern office building on March 1, 20-1 for a combined price of $700,000. $400,000 was paid in Cash and the remainder is owing on a 6% Note Payable. The land had a cost of $250,000 and the building had a net book value of $200,000 on the seller's books. The land and building had fair market values of $480,000 and $220,000, respectively on March 1. Record the journal entry to reflect the basket purchase of the capital assets. - Know how to calculate amortization using the straight-line method - On January 1, 20-1 Madonna Manufacturing purchased a new piece of equipment at a cost of $400,000 which has a life expectancy of 30,000 hours of use. During 201 the equipment was used for 800 hours, and during 202 the equipment was used for 1,000