Prepare the necessary journal entries to record the following transactions in 2014 for the Pina Colada. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Jan. Discarded old store equipment that originally cost $31,500 and had a book value of $6,552 on the date of disposal. 11 Depreciation on the equipment has already been recorded for the current year. Mar. Sold a delivery truck for $10,584. The delivery truck originally cost $66,780 and had accumulated depreciation of 6$57,960 on the date of sale. The depreciation on the truck has already been recorded for the current year. Mar. Straight-line depreciation is recorded for the first quarter of 2014 on equipment with a 4-year useful life that was 31 purchased on January 1,2012 , for $34,524 with an estimated salvage value of $4,284. May. Incurred and paid for $705,600 of costs to develop a new patent. The patent has a legal life of 20 years. 10 Sept. Paid the corporate attorney $80,400 to register the new patent (see May 10 ). 30 Nov. Acquired RT Sheffield, a small parts company, for $390,600 cash. RT Sheffield had net assets totaling $1,108,800, net 1 liabilities totaling $819,000. Dec. Recognized amortization for the last quarter of 2014. 31 Date Account Titles and Explanation Debit Credit Jan. 110 Accumulated Depreciation Equipment Accumulated Depreciation Cash Delivery Truck Mar. 316 Depreciation Expense Accumulated Depreciation May 100 patent Sep. 30 Nov, 1 o Net Assets Goodwill Net Liabilities Deci 310 Amortization Expense Prepare the necessary journal entries to record the following transactions in 2014 for the Pina Colada. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Jan. Discarded old store equipment that originally cost $31,500 and had a book value of $6,552 on the date of disposal. 11 Depreciation on the equipment has already been recorded for the current year. Mar. Sold a delivery truck for $10,584. The delivery truck originally cost $66,780 and had accumulated depreciation of 6$57,960 on the date of sale. The depreciation on the truck has already been recorded for the current year. Mar. Straight-line depreciation is recorded for the first quarter of 2014 on equipment with a 4-year useful life that was 31 purchased on January 1,2012 , for $34,524 with an estimated salvage value of $4,284. May. Incurred and paid for $705,600 of costs to develop a new patent. The patent has a legal life of 20 years. 10 Sept. Paid the corporate attorney $80,400 to register the new patent (see May 10 ). 30 Nov. Acquired RT Sheffield, a small parts company, for $390,600 cash. RT Sheffield had net assets totaling $1,108,800, net 1 liabilities totaling $819,000. Dec. Recognized amortization for the last quarter of 2014. 31 Date Account Titles and Explanation Debit Credit Jan. 110 Accumulated Depreciation Equipment Accumulated Depreciation Cash Delivery Truck Mar. 316 Depreciation Expense Accumulated Depreciation May 100 patent Sep. 30 Nov, 1 o Net Assets Goodwill Net Liabilities Deci 310 Amortization Expense
