Required information [The following information applies to the questions displayed below.] During the current year ending on December 31, BSP Company completed the following transactions: a. On January 1 , purchased a patent for $22,500 cash (estimated useful life, five years). b. On January 1, purchased another business for $168,000 cash, including $8,000 for goodwill. The assets included accounts receivable with a fair value of $12,000 and property and equipment with a fair value of $148,000 (with a residual value of $15,540 and estimated useful life of 10 years). The company assumed no liabilities. Goodwill has an indefinite life. c. On December 31, constructed a storage shed on land leased from D. Heald. The cost of the shed was $33,600. The company uses straight-line depreciation. The lease will expire in five years. (Amounts spent to enhance leased property are capitalized as intangible assets called Leasehold Improvements.) d. Total expenditures for ordinary repairs were $6,100 during the current year. e. On December 31 of the current year, sold Machine A for $6,000 cash. Original cost was $25,000; accumulated depreciation to December 31 of the prior year was $16,240 (on a straight-line basis with a $4,700 residual value and five-year useful life). Record the depreciation expense in transaction e(1) and the sale in transaction e(2). f. On December 31 of the current year, paid $5,600 for a complete reconditioning of Machine B acquired on January 1 of the prior year. Original cost, $45,100; accumulated depreciation to December 31 of the prior year was $2,500 (on a straight-line basis with a $7,600 residual value and 15 -year useful life). Required: 1. Record journal entries for transactions (a) through (f). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Answer is not complete. } \\ \hline No & Transaction & Ge & & Debit & Credit \\ \hline \multirow[t]{2}{*}{1} & a & Patent & 2 & 22,500 & \\ \hline & & Cash & 2 & & 22,500 \\ \hline \multirow[t]{4}{*}{2} & b & Accounts receivable & & 12,000 & \\ \hline & & Property and equipment & & 148,000 & \\ \hline & & Goodwill & 2 & 8,000 & \\ \hline & & Cash & & & 168,000 \\ \hline \multirow[t]{2}{*}{3} & c & Leasehold improvements & & 33,600 & \\ \hline & & Cash & 2 & & 33,600 \\ \hline 4 & d & Repairs expense & 2 & 6,100 & \\ \hline \multirow[t]{2}{*}{5} & e(1) & Depreciation expense & & 3,240 & \\ \hline & & Accumulated depreciation & 2 & & 3,240 \\ \hline \multirow[t]{4}{*}{6} & e(2) & Cash & 2 & 6,000 & \\ \hline & & Loss on sale of machine & & 2,760 & \\ \hline & & Accumulated depreciation & & 16,240 & \\ \hline & & Machine A & 2 & & 25,000 \\ \hline \multirow[t]{2}{*}{7} & f & Machine B & 2 & 5,600 & \\ \hline & & Cash & 2 & & 5,600 \\ \hline \end{tabular} 2. 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 transaction/event, select "No journal entry required" in the first account field