Question
Transmountain Oil Company acquired 4 leases during the year Lease A $235,000 Lease B $525,000 Lease C $190,000 Lease D $620,000 $1,570,000 Each lease is
- Transmountain Oil Company acquired 4 leases during the year
| Lease A | $235,000 |
| Lease B | $525,000 |
| Lease C | $190,000 |
| Lease D | $620,000 |
| $1,570,000 |
Each lease is considered to be individually insignificant. Transmountains policy is to provide a year-end allowance equal to 70% of all individually insignificant leases. The allowance account had a $45,000 impairment at the end of the year.Record the journal entries to account for the impairment.
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Research Methods In Accounting
Authors: Malcolm Smith
5th Edition
1526490676, 978-1526490674
