unit 3
Dec 31 Retired equipment that cost $490,000 when purchased on December 31,2013. (a) Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50 -year life and no salvage yalue. The equipment is estimated to have a 10 -year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (List all debit entries before credit entries. Credit occount tities are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the occount titles ond enter O for the amounts.) For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal ploces, eg. 0.50.) Depreciation expense per mile Marigold Company acquires a delivery truck at a cost of $79,000 on January 1,2022. The truck is expected to have a salvage value of $3,000 at the end of its 5 year useful life. Assuming the declining balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method. In recent years, Bramble Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. For the declining balance method, the company uses the double-declining rate For the units-of-activity method, total miles are expected to be 115,000 . Actual miles of use in the first 3 years were 2021.26,000;202, 35,000; and 2023, 29,000. At December 31,2022 , Bridgeport Company reported the following as plant assets. During 2023, the following selected cash transactions occurred. April 1 Purchased land for $2,050,000. May 1 Sold equipment that cost $1,020,000 when purchased on January 1, 2019. The equipment was sold for $612,000. June 1 Sold land purchased on June 1,2013 for $1,560,000. The land cost $403,000. July 1 Purchased equipment for $2,580,000. Record adjusting entries for depreciation for 2023. (List all debit entries before credit entries. Credit occount titles are outomatically indented when amount is entered. Do not indent manuolly. Record joumal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) The intangible assets section of Monty Company at December 31,2022 , is presented here. The patent was acquired in January 2022 and has a useful life of 10 years. The franchise was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2023. Jan.2. Paid $25,200 legal costs to successfully defend the patent against infringement by another company. Sept. Paid $50,000 to an extremely large defensive lineman to appear in commercials advertising the company's products. The 1 commercials aired in September and October. Oct. 1 Acquired a franchise for $120,600. The franchise has a useful life of 50 years: Nov- Developed a new product, incurring $137,000 in research and development costs during December. A patent was Dec granted for the product on January 1,2024. Cash (To record depreciation) May 1 Cash Accumulated Depreciation-Equipment Sales Revenue Equipment (To record sale of equipment) June1 Cash and Equipment) (To record sale of equipment) Accumulated Depredation Equipment Equipment (To record deprecation) Decis1 v Cash Sales Reverue Land Equipment Cast Depredition Expense Culver Co, has equipment that cost $79,900 and that has been depreciated $50,500. Record the disposal under the following assumptions. (a) It was discarded with no cash received. (b) It was sold for $23,800. (c) It was sold for $32,100. (Ust all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select " No Entry" for the occount titles and enter O for the amounts.)
