4. Scheuller Company had machinery that had originally cost $246,000. The machinery was three years old...

4. Scheuller Company had machinery that had originally cost $246,000. The machinery was three years old and had been depreciated using the double-declining-balance method, over a five-year useful life with a residual value of $18,000.

Answer each of the following independent questions:

Required:

If the company sold the machinery for $105,000, prepare a journal entry to record the sale.

If the company sold the machinery for $48,000, prepare a journal entry to record the sale.

B. Discuss the following:

1. Discuss the nature of, and the accounting for, intangible assets.

2. Illustrate the balance sheet presentation of plant assets and intangible assets.

Solutions

Expert Solution

Answer 1- Answer B-

1. Intangible assets are those assets which can not be seen and touched, but are very useful for the smooth running of business. Eg. - goodwill, patents, copyright,computer softwares etc. These assets are consumed over a specific period of time. The accounting of intangible assets is done by recognising these assets under long term assets, but with regular reviews of their impairment value.

2. In balance sheet presentation the plant & assets are shown under the head 'Long term tangible assets' , while the intangible assets are shown under ' Long term intangible assets,.

ekkarill92 answered 6 months ago

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