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In: Accounting

Major Journal Entries – Test 03 Depreciation Expense Entry Patent Purchase Entry Amortization Expense Entry PP&E...

Major Journal Entries – Test 03

Depreciation Expense Entry

Patent Purchase Entry

Amortization Expense Entry

PP&E Gain Entry

PP&E Loss Entry

PP&E Sold between Depreciation Dates (at a Gain)

Step 1:

Step 2:

Short-Term Equity Purchase (Asset Issue)

Short-Term Equity (Increase in the Year-End Value, Not Sold)

Impairment Entry

Bob Corporation needs your help with the double-declining-balance method of depreciation. Given the below information you should calculate the below two numbers.

Invoice Price (Equipment Purchased) => 90,000

Setup Charges (Equipment Purchased) => 6,000

Sales Tax & all Other charges (Equipment Purchase) => 10,000

Life => 12 years

Salvage Value => 800

Depreciation Expense (year # 02) _____________________________

Carrying Value (end of year # 02) ______________________________

Sue Corporation needs your help with the straight-line method of depreciation. Given the below information you should calculate the below two numbers.

Invoice Price (Equipment Purchased) => 120,000

Setup Charges (Equipment Purchased) => 6,000

Sales Tax & all Other charges (Equipment Purchase) => 10,000

Life => 10 years

Salvage Value => 4,000

Depreciation Expense (year # 02) _____________________________

This asset was sold for 150,000 during year #03 (1/4 of the year passed during year # 03 (hint: remember this event will require two steps)).

Gain or Loss (year # 03) ______________________________

Expert Solution

ekkarill92 answered 1 year ago

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