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eBook Calculator Amortization and depletion entries Instructions Starting questions Chart of Accounts Journal Instructions Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: A. Timber rights on a tract of land were purchased for $3,589,600 on February 22. The stand of timber is estimated at 4,786,000 board feat. During the current year. 1.127.100 board feet of timber were cut and sold B. On December 31, the company determined that $3,599,000 of goodwill was impaired. C. Governmental and legal costs of $7.140,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 10 years. Amortization is to be for three-fourths of a year UIT Required: 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items 2. Journalize the adjusting entries required to record the amortization, depletion, or impairment for each item. Refer to the Chart of Accounts for exact wording of account titles PAGE 2 Check My Work Emainstructor Save and Instructions Starting questions Chart of Accounts Journal Instructions Da Starting questions 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the items in the Instructions A s B $ C. $ 1. ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale of Vehicles 621 Gain on Sale of Equipment 622 Gain on Sale of Timber Rights 623 Gain from Sale of Goodwill 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 123 Vehicles 124 Accumulated Depreciation-Vehicles b. Ond 521 Advertising Expense Chart of Accounts 124 Accumulated Depreciation-Vehicles 125 Equipment 126 Accumulated Depreciation-Equipment 130 Timber Rights 131 Accumulated Depletion 132 Goodwill 521 Advertising Expense 522 Depreciation Expense-Vehicles 523 Delivery Expense 524 Repairs and Maintenance Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Equipment 533 Depletion Expense 534 Amortization Expense-Patents 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable s ng questions Chart of Accounts LIABILITIES 354 Amortization Experise-Patents 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Vehicles 721 Loss on Sale of Equipment 722 Loss on Sale of Timber Rights 723 Loss from Impaired Goodwill EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends eBook Calculator Amortization and depletion entries Instructions Starting questions Chart of Accounts Journal Instructions Da Starting questions Chart of Accounts Journal PAGE 1 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS ACCOUNTING FUTATION LIABILITIES EQUITY 1 Adjusting Entries 1 3 b. On December 31, the company determined that 53,599,000 of goodwill was impaired Check My Work All work saved. Email Instructor Save and Exit Amortization and depletion entries Instructions Starting questions Chart of Accounts Journal Instructions Da Starting questions Chart of Accounts Journal PAGE 2 JOURNAL DATE DESCRIPTION POST. REF DENT CHEDIT ACTUALIATION ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 3 c. Governmental and legal costs of $7.140,000 were incurred on April 3 in obtaining a pateat with an estimated economiche of 10 years. Ammortization is to be for three-fourths of Instructions Starting questions Chart of Accounts Journal Instructions Da Starting questions Chart of Accounts Journal c. Governmental and legal costs of 57 140.000 were incurred on April in obtaining at with an estimated economic life of 10 years. Amortization is to be for three-fourth of a ye INGEN JOURNAL DATE DESCRIPTION ROSE. REY DENT CREDIT ACCOUNT FOLATION ASSETS LES FOUNTY 1 Adjusting Entries 2 3
