For each of the following transactions or adjustments, indicate the effect of th
ID: 2424951 • Letter: F
Question
For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an addition ) or a subtraction ) Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category a. Recorded $200 of depreciation expense b. Sold land that had originally cost $9,000 for $12,000 in cash. c. Acquired a new machine under a capital lease. The present value of future lease payments, discounted at 11%, was $10.000 d. Recorded the first annual payment of $2,900 for the leased machine (in part c) e. Recorded a $6,000 payment for the cost of developing and registering a trademark f. Recognized periodic amortization for the trademark (in part e) using a 44-year useful life. g. Sold used production equipment for $18,000 in cash. The equipment originally cost $45,000, and the accumulated depreciation account has an unadjusted balance of $23,500. It was determined thata $1,700 year-to-date depreciation entry must be recorded before the sale transaction can be recorded. Record the adjustment and the sale. ransaction Asset Liabilities Net Income Accumulated depreciation -200 Depreciation expenses -200 b. d. g.Explanation / Answer
Transactions Assets Liabilities Net Income a. Accumulated Depreciation + 200 Depreciation expenses + 200 b. Cash + 12000 Gain on sale of land + 3000 Land -9000 c. Machine + 10,000 Capital lease Liability +10,000 d. Cash - 2900 Capital lease Liability -900 Interest Expenses=10,000x 10% = -1000 e. Trademark + 6000 Cash - 6000 f. Trademark 6000/44 years =-136.36 Expense = -136.36 g. Cash +18000 Expense = -1700 Depreciation = +25200 , -1800 Loss on sale of Equipment = 45,000 -18000 - 25200 = -1800 Equipment = - 45000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.