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Required information [ The following information applies to the questions displayed below. ] During the current year ending on December 3 1 , BSP Company
Required information The following information applies to the questions displayed below. During the current year ending on December BSP Company completed the following transactions: a On January purchased a patent for $ cash estimated useful life, nine years b On January purchased another business for $ cash, including $ for goodwill. The assets included accounts receivable with a fair value of $ and property and equipment with a fair value of $with a residual value of $ and estimated useful life of years The company assumed no liabilities. Goodwill has an indefinite life. c On December constructed a storage shed on land leased from D Heald. The cost of the shed was $ The company uses straightline depreciation. The lease will expire in six years. Amounts spent to enhance leased property are capitalized as intangible assets called Leasehold Improvements. d Total expenditures for ordinary repairs were $ during the current year. e On December of the current year, sold Machine A for $ cash. Original cost was $; accumulated depreciation to December of the prior year was $on a straightline basis with a $ residual value and fiveyear useful life Record the depreciation expense in transaction e and the sale in transaction e On December of the current year, paid $ for a complete reconditioning of Machine B acquired on January of the prior year. Original cost, $; accumulated depreciation to December of the prior year was $on a straightline basis with a $ residual value and year useful life For each of these the assets involved in transactions a through f record the adjusting entry for depreciation or amortization expense at the end of the current year. Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
Required information
The following information applies to the questions displayed below.
During the current year ending on December BSP Company completed the following transactions:
a On January purchased a patent for $ cash estimated useful life, nine years
b On January purchased another business for $ cash, including $ for goodwill. The assets included
accounts receivable with a fair value of $ and property and equipment with a fair value of $with a
residual value of $ and estimated useful life of years The company assumed no liabilities. Goodwill has an
indefinite life.
c On December constructed a storage shed on land leased from D Heald. The cost of the shed was $ The
company uses straightline depreciation. The lease will expire in six years. Amounts spent to enhance leased property
are capitalized as intangible assets called Leasehold Improvements.
d Total expenditures for ordinary repairs were $ during the current year.
e On December of the current year, sold Machine A for $ cash. Original cost was $; accumulated
depreciation to December of the prior year was $on a straightline basis with a $ residual value and
fiveyear useful life Record the depreciation expense in transaction e and the sale in transaction e
On December of the current year, paid $ for a complete reconditioning of Machine B acquired on January of
the prior year. Original cost, $; accumulated depreciation to December of the prior year was $on a
straightline basis with a $ residual value and year useful life
For each of these the assets involved in transactions a through f record the adjusting entry for depreciation or amortization
expense at the end of the current year.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
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