Record any necessary straight-line amortization

Assignment Help Accounting Basics
Reference no: EM13852441

The general journal of Kevin Berry Industries included the following entries relating to various expenditures during 20X5. Review this information and prepare corresponding entries to record any necessary straight-line amortization or other impairment for the year ending December 31.

GENERAL JOURNAL

Date

Accounts

Debit

Credit

1-Jan

Patent

30,000

 

 

Cash

 

30,000

 

Acquired a patent from an inventor.   The patent has a 15-year remaining legal life, but it is expected that Berry will utilize the patent for only 5 years.

 

 

 

 

 

 

15-May

Research Expense

12,000

 

 

Cash

 

12,000

 

Incurred costs in research and development activity.  It is possible these costs will result in new product with a 48-month life.

 

 

 

 

 

 

1-Sep

Inventory

25,000

 

 

Building

75,000

 

 

Goodwill

50,000

 

 

Cash

 

150,000

 

To record purchase of business, expected to be operated successfully for an indefinite number of future years.

 

 

 

 

 

 

20-Dec

Copyright

10,000

 

 

Cash

 

10,000

 

Purchased copyright to a video production, but concluded that it was worthless by year's end.

 

 

Reference no: EM13852441

Questions Cloud

Discuss the current operating performance concept : Discuss the current operating performance concept of income and the all-inclusive concept of income. Is comprehensive income consistent with either of the two? Discuss why or why not.
Design and implement a second child observation project : Were you to design and implement a second Child Observation Project, what would you do differently? What new insights have led you to this conclusion
Financial statements of a publicly traded company : Obtain an annual report from a publicly traded corporation that is interesting to you. Be sure the company has property and equipment, intangible assets, and long-term debt on its balance sheet. Using techniques you have learned in the previous we..
Find the npv and irr : Capital Budgeting Decision Methods This case is designed as an introduction to capital budgeting methods. NPV, IRR, MIRR, PI, and  Payback are included in the analysis.
Record any necessary straight-line amortization : The general journal of Kevin Berry Industries included the following entries relating to various expenditures during 20X5. Review this information and prepare corresponding entries to record any necessary straight-line amortization or other impai..
What the application would do with that data : As you go through the case study, indicate where a standard hospital computer application would be accessed, what information would be going to that application, what the application would do with that data
End-of-month adjusting entries : 1. After recording all the November transactions and the required end-of-month adjusting entries, the total expenses on the income statement for the month ending November 30, 2014 will be:
Accounting departments and companies operate : What is the Sarbanes-Oxley Act of 2002? Why did it come about? How have the new rules in the Sarbanes-Oxley Act of 2002 affected the way accounting departments and companies operate? What are some positive outcomes from these changes?
What is the material quantity variance : During the first quarter, 5,000 units were made, at an actual cost of $10.50 per unit (three pieces at $3.50 per piece). What is the material quantity variance?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  A cash outflow in the operating activities section of the

a cash outflow in the operating activities section of the statement of cash flows but that dividends paid are included

  The purchasing department buys the quantities of raw

costello corporation manufactures a single product. the standard cost per unit of product is shown below. direct

  Continuous probability distributions-probability concepts

How may a company use probability to determine whether or not it is feasible to use primary data in a research study? Explain your answer.

  West palm company engaged in the following transactions

west palm company engaged in the following transactions involving promissory notes. may 3 sold engines to mittal

  Compute the project profitability index for each investment

Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.)

  Lorge company bottles and distributes livit a diet soft

lorge company bottles and distributes livit a diet soft drink. the beverage is sold for 50 cents per 16-ounce bottle

  Ownership of brown shares

How many shares does Bob own in Brown Corporation assuming the same facts as in a., above, augmented by BZ's ownership of Brown shares?

  The parsons paper company had cash sales in 2009 of 220000

the parsons paper company had cash sales in 2009 of 220000. accounts receivable at the beginning of the year were

  What amount of this debt should be eliminated

Kat Inc. holds 75% of the outstanding common stock of Rax Corp. Rax currently owes Kat $500,000 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of this debt should be eliminated?

  Compute the first-year depreciation

The estimated salvage value at the end of 10 years is $25,000. Using MACRS depreciation, compute the first-year depreciation.

  Journalize and post adjusting entries

Journalize and post adjusting entries. Prepare an adjusted trial balance.

  Clopack company manufactures one product that goes through

clopack company manufactures one product that goes through one processing department called mixing. all raw materials

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd